Tsb Bnk Grp Share Discussion Threads

[montyhedge] 19/6/2014 17:40

290p - 300p tomorrow.

[mitchy] 18/6/2014 23:48

Tim Wallace

by Tim Wallace

June 18, 2014, 1:58am



David Hellier

and David Hellier









ENTHUSIASTIC American investors are helping to push TSB's shares towards the top end of the price range, City A.M. understands.

Such a strong result for the bank would represent a surprise success, as markets have suddenly turned cautious on initial public offerings in recent weeks.

Lloyds is selling a 25 per cent stake in the new high street bank, floating it on the stock market.

It had initially given a price range of 220p to 290p, and it is understood that the shares are now likely to sell in the top half of that range.

As a result, the bank can expect to be valued at around £1.3bn to £1.4bn, or 15 per cent short of its book value of £1.6bn.

The price range has not formally been tightened, but it is understood the investment banks marketing the shares to investors have verbally informed them of the high demand for the stock.

Analyst Gary Greenwood from Shore Capital yesterday argued that even at 290p the shares could be undervalued.

"We believe the shares have been priced to go and represent an enticing investment opportunity, even at the top-end of the proposed valuation range," he said.

Despite the bank planning to wait until 2017 before paying a dividend, overseas investors are thought to be attracted to the quality of TSB's loan book and its value as a household name.

[sarahbudd] 18/6/2014 10:51

touch of Rik Mayall there :-)

[knicol46] 18/6/2014 09:11

Hope that your stockbroker gets their act together for Friday 8am. I do remember the way some brokers (especially Hargreaves) treated their investors over the Royal Mail ipo.

[jonwig] 18/6/2014 08:51

mitchy - you reckon £750 will get full allocation?
And over £750? Scaled back to maybe £750?

We applied for £2000 each - hope it won't be kicked out!

[knicol46] 17/6/2014 22:40

offer price now 250 - 270p

[diku] 17/6/2014 18:21

All aboard the TSB band wagon?....

[mitchy] 16/6/2014 08:20

Banks make money. Banks without the drag of PPI claims make more..end of.

[curlly] 15/6/2014 19:03

Thanks monty

[montyhedge] 15/6/2014 18:57

Yes some well placed stories saying hedge funds interested. Going by the Saga, Pets at Home rip off IPO I expect caution.That's my view.

[curlly] 15/6/2014 18:10

Any reports in the papers today?

[diku] 15/6/2014 14:42

Monty you da man!....

[curlly] 14/6/2014 16:09

monty
What are you on about?

[montyhedge] 14/6/2014 09:38

No interest looks like float at 220p.Should be 190p.

[leedslad001] 13/6/2014 08:27

Applied for £750 seems thats all we will get. Rmail was farce so most people will apply for minimum to make sure they get some!

[montyhedge] 12/6/2014 12:53

Talk of 15% premium.

[waldron] 12/6/2014 11:11

Lloyds takes no chances with TSBAmid signs of investor fatigue after a deluge of recent IPOs, it looks like Lloyds
(LLOY) isn't taking any chances with its forthcoming flotation of a 25 per cent stake in TSB . That's Lloyds' vehicle for divesting the 631 branches required by EU competition regulators as the price for state support during the financial crisis.

Specifically, Lloyds has announced an offer price range of 220p-290p which, based on the mid-point, implies a market value of just under £1.3bn. That represents a noticeable discount to the bank's book value of around £1.5bn, which is a fairly inexpensive rating: shares in Lloyds itself, for instance, trade at around 1.5 times expected tangible book value.

Yet TSB will start life in better shape than most lenders. Its book largely comprises low-risk UK mortgages and is funded by stable customer deposits. Moreover, it boasts an impressive capital cushion (a Basel III-basis core equity tier-one capital ratio of 21.6 per cent) and, crucially, Lloyds has provided an indemnity so that TSB won't be liable for any historic misconduct claims.

IC VIEW:
The offer is open to retail investors who will be able to receive one free share for every 20 acquired - up to the value of £2,000 - if held for a year after the float. And with the shares set to be priced at below book value, it's an offer that's hard to ignore. After all, TSB looks like a smart way to play the UK's economic recovery, but without exposure to the legacy issues that continue to afflict other big banks.

[johnsoho] 11/6/2014 21:08

2WILDTHING Reckon you maybe right, I also think it will be at the lower end to ensure a successful float.....time will tell

[2wildthing] 11/6/2014 18:01

Johnsoho, If I was a betting man I would go for middle, but have a feeling these will go at the lower end....just a feeling...........

[jonwig] 11/6/2014 14:39

The optimum for the 1:5 bonus seems to be £4400 application which of course might be either scaled back or produce less than 2000 shares.

Despite the risks, I think this should be steady on first dealings. RM was mispriced because [choose a reason!!] and Saga because of greed. Whether to stay or fold afterwards, can therefore be mulled over.