Shawbrook has confirmed it is considering an initial public offering (IPO) and intends to publish a registration document to trade on the London Stock Exchange’s main market.
This comes weeks after it was reported that Shawbrook was in talks with investors.
The bank said it was considering an IPO to position the group for its next stage of evolution and enhance its brand. The group said there was also an opportunity to drive growth through its existing products and by expanding into new markets and adjacent product ranges.
Shawbrook said it would continue its merger and acquisition activities to give it a “strategic advantage”, and “supercharging” acquired businesses.
The bank said if it proceeded with an IPO, it would expect its shares to be traded on the main market and added to the equity shares category of the Financial Conduct Authority’s (FCA’s) official list.
The FCA has since approved its registration document.
Aldermore Insights with Jon Cooper: Edition 1 – Downing Street Roundtable
Sponsored by Aldermore
It would comprise new shares to be issued and existing ones to be sold, and the offer would be made to qualified institutional buyers in the US as well as retail investors in the UK.
The bank said it had a “proven track record” of delivering high growth and returns, pointing to the increase in its loan book from £1.4bn in 2013 to £17bn this year.
It added that it was led by an “experienced, entrepreneurial and innovative management team” and had demonstrated its ability to “identify, acquire and supercharge” lending platforms, such as its recent acquisition of ThinCats.
Shawbrook said the group aimed to continue its trajectory of high growth and high returns, with a goal of doubling its loan book to around £30m by the end of 2030.
Marcelino Castrillo, chief executive of Shawbrook, said: “When Shawbrook was founded, we saw that large parts of the UK economy were unable to access the capital needed to grow. Since then, we have created a scaled and diversified banking platform, combining next-generation technology with deep human expertise, that makes us uniquely placed to provide our customers with the flexibility, speed and certainty they need.
“The strength of our platform has enabled us to deliver a long track record of sustainable, profitable growth through a wide variety of macro conditions. We have transformed the size of our loan book as we’ve won share, entered new markets and expanded our capabilities through strategic acquisitions; we have built a trusted and attractive savings proposition that provides us with a stable and scalable funding base; and the significant investment in our digital platform provides excellent risk management capabilities and strong operating leverage.”
He added: “Looking ahead, we are as excited as we have ever been. We have achieved real scale, and our current markets are large and growing, supported by attractive tailwinds. We also see a significant opportunity to bring Shawbrook’s offering to new types of customers.
“The entrepreneurial spirit that has driven our growth remains at the heart of how we operate and we have ambitious plans for the future. An IPO would mark an important milestone in our journey.”
