The owners of Shawbrook Group, the mid-sized British lender, are drawing up plans to kickstart London’s moribund listings arena with a stock market flotation, valuing it at more than £2bn.
Sky News has learnt that BC Partners and Pollen Street Capital, which took Shawbrook private in 2017, are close to appointing Goldman Sachs to oversee work on a potential initial public offering.
Other investment banks, possibly including Barclays, are expected to be added in the near future.
Shawbrook’s shareholders are said to be keen to take the company public during the first half of this year.
People close to the situation cautioned that no decision to proceed with a listing had been taken, and that it would be dependent upon market conditions.
If it does go ahead, Shawbrook would almost certainly rank among the largest companies to list in London during the first half of 2025.
Bankers and investors are also waiting to see whether British regulators give the green light to a flotation for Shein, the Chinese-founded online fashion giant, which would be one of the City’s biggest-ever floats if it takes place.
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Overall, London is fighting to overturn the impression that its public markets have become a troubled arena for public companies, afflicted by a lack of liquidity and weaker valuations than they might attract in the US.
In recent months, that perception has intensified with the decision of Ashtead, the FTSE-100 equipment rental company, to move its primary listing to New York.
Shawbrook, which employs close to 1,600 people, has 550,000 customers.
Founded in 2011, it was established as a specialist savings and lending institution, providing loans for home improvement projects and weddings, as well as business and real estate lending.
It is among a crop of mid-tier lenders, including OneSavings Bank, Aldermore Bank and Paragon Bank, which have collectively become a significant part of Britain’s banking landscape since the last financial crisis.
The bid to take Shawbrook public this year will come a year after its owners were reported to have hired Bank of America and Morgan Stanley to explore a sale or listing.
It explored a similar process in 2022 but abandoned it amid volatile market conditions.
The company has also sought to position itself at the heart of potential consolidation among the sector’s leading players.
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In the autumn of 2023, Shawbrook approached Metro Bank about a possible takeover as the latter bank battled to stay afloat.
A series of proposals was rejected by Metro Bank’s board.
Just weeks earlier, Shawbrook sounded out the Co-operative Bank about a £3.5bn all-share merger in an attempt to pre-empt a wider auction of the former mutually owned lender.
That, too, was rebuffed, with the Co-operative Bank completing its sale to the Coventry Building Society this week.
Third-quarter results for Shawbrook released to bondholders in November disclosed 18% growth in its loan book on an annualised basis to just over £15bn.
BC Partners and Pollen Street own equal stakes in Shawbrook, with its management team also owning a minority.
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The bank is run by chief executive Marcelino Castrillo.
“We continue to see promising opportunities for expansion and value creation across our core markets, including SME and real estate,” Mr Castrillo said in November.
“The combination of an exceptional customer franchise, a more stable macroeconomic outlook and increasing customer confidence means we are well-positioned to continue to deliver on our strategic ambitions throughout the remainder of 2024 and beyond.”
This weekend, Shawbrook, BC Partners and Pollen Street all declined to comment.
