Shawbrook Plans £2 Billion IPO to Boost Growth and Capital Access

The London IPO market is witnessing renewed activity as digital bank Shawbrook announced plans for an initial public offering (IPO) on the main market of the London Stock Exchange. The listing, anticipated to value the bank at nearly £2 billion, reflects a significant shift following a sluggish period for new listings in 2023.

Based in Brentwood, Shawbrook stated that the IPO would enhance its profile and brand recognition. The bank aims to leverage the capital raised to strengthen its ability to attract and retain key management and employees. Furthermore, it seeks to gain access to a broader range of capital sources, positioning itself for future growth.

This announcement comes at a pivotal time for the London stock market, which saw a dramatic decline in listings earlier this year, dropping to 23rd in global IPO rankings. However, the momentum is shifting with recent activity, including a dual listing of Texan energy and data centre company Fermi, as well as intentions to float from the tinned tuna producer Princes and cosmetics gadgets firm Beauty Tech.

Founded in 2011, Shawbrook has grown rapidly, now employing close to 1,600 people and serving approximately 550,000 customers. The bank specializes in providing mortgages for professional landlords, property investors, and homeowners with complex income and credit profiles, as well as motor finance in both the specialist mass market and high-end luxury segments. Its loan book has skyrocketed from £1.4 billion in 2014 to an impressive £17 billion, with plans to expand it to £30 billion by 2030.

CEO Marcelino Castrillo emphasized the bank’s commitment to addressing the capital access challenges faced by large sectors of the UK economy. He stated, “Since then, we have created a scaled and diversified banking platform, combining next generation technology with deep human expertise.” He noted that Shawbrook’s platform allows for flexibility, speed, and certainty in meeting customer needs.

Castrillo highlighted the bank’s history of sustainable and profitable growth, stating, “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.” He pointed out that the bank’s strategic acquisitions and investments have built a robust savings proposition, providing a stable funding base.

Looking to the future, Castrillo expressed optimism about Shawbrook’s potential. “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,” he said. The prospect of an IPO represents a critical milestone in Shawbrook’s ambitious journey.

The financial advisory team for the IPO includes Ardea Partners International as lead adviser, with Goldman Sachs International serving as Sponsor, Joint Global Coordinator, and Joint Bookrunner. Additional support comes from Barclays, Stifel Nicolaus Europe, Deutsche Numis, and UBS as joint bookrunners.

As Shawbrook moves forward with its IPO plans, the bank not only aims to enhance its market position but also seeks to contribute to the revitalization of the London IPO landscape, signaling a potential rebound for the city’s financial markets.