TSB float: last chance to get in on the initial offer
Time is running out if you want to apply to buy shares in TSB in the initial public sale.
If you want to buy shares in the initial public offering (IPO) of TSB, then time is running out, as it's due to close on 17th June.
The initial price range has been initially announced as between 220p and 290p a share. A final share price in the middle of this range would mean TSB would be worth about £1.275 billion. You can read the prospectus for the share offer for more details.
A quarter of the business is up for grabs with the final initial share price expected to be confirmed on or around 20th June.
Small investors have the chance to grab free shares as part of the sale. You will get one free share for every 20 shares bought and held for 12 months, up to a maximum value of £2,000.
TSB is being floated on the stock market after Lloyds was ordered to shrink its business as a result of receiving state aid during the global financial crisis. Lloyds will be required to sell the rest of its stake in TSB by the end of 2015.
How to buy
You’ll be able to buy shares in TSB through the investment platforms, stockbrokers and sharedealing services that are acting as intermediaries. You'll be able to hold them in a stocks & shares ISA or a self-invested personal pension (SIPP).
The minimum application amount will be £750.
Should I invest?
Cliff D’Arcy has taken a look at the TSB proposition and how attractive it is to investors. Check out Should you buy shares in TSB? for his insight.
Invest in TSB via a stocks & shares ISA – compare what's on offer
This article has been updated since its original publication
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As I see I it if you hold the shares for over a year you will have more shares than if you sell before the year. Most people will end up with £750 worth of shares which if the shares are priced midway as seems likely at £2.50 this will give you 300 shares, and after holding for a year you'll have another 15 which is £37.50 (assuming the share price is the same). Personally I think there are are more positives for TSB ie no debt, no legacy issues (such as PPI) a modern computer system, 500+ branches, a reasonable mortgage book and only a 4% share of the retail market so plenty of growth potential, also a potential takeover target by another Bank.
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220 - 290p - What is the feeling on that price? Seems a little high but I haven't looked into the financials in depth. LTSB @ 79p, Barc at 245p......
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I suspect it is a con... unless it is ONLY on offer to the smaller investor (i.e. not institutional investors), then there is effectively a built in charge/incentive (depending how you look at it) for the institution/small investor. Saga was only for existing customers - I think that's age discrimination... as someone who isn't 50 (or anywhere near it!) :-)
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09 June 2014