Lloyds sets TSB IPO price below book value

The IPO, which will give TSB a market cap of approximately £1.275bn, will see 125m shares allotted, equivalent to 25% of TSB’s existing ordinary shares. The price is below TSB’s net asset value of £1.6bn, according to Reuters, reflecting a cooling of the UK IPO market in recent weeks. Lloyds is required by European regulators to sell the 631 TSB branches by the end of 2015, as a condition of receiving state aid amid the financial crisis five years ago. The sale is expected to be the first of several tranches.