Plans for Clydesdale Bank’s flotation have been officially submitted to the London stock market.
The Glasgow-based lender, along with its Yorkshire Bank brand, is to be spun off by its parent, National Australia Bank (NAB), next year.
The sell-off had been expected to take place before the end of this year, but NAB said earlier this month that the move will now happen in February, with institutional investors being offered 25 per cent of the shares.
Existing NAB shareholders will hold the remaining 75 per cent of the bank. They will receive one Clydesdale share for every four they hold in the Melbourne-based group.
In a filing with the London Stock Exchange, published today, Clydesdale said it will press ahead with its initial public offering (IPO) in London and Australia. It is expected to qualify for inclusion in London’s FTSE 250 Index. As at 30 September, the lender had 2.8 million retail and business customers, with more than £26.3 billion of customer deposits and a £28.8bn customer loan portfolio, of which £20.5bn is made up of mortgages.
Clydesdale chief executive David Duffy said: “We are in a good position as we move into this exciting new period as an independent bank. Much has been done to re-shape and strengthen the business; supporting our plans for growth by building a better bank for customers.
“We have a clear customer-focused strategy; delivering returns by supporting our customers. Employees across the business are committed to offering our customers the products and services they need, and delivering them in the way they want.”
The bank’s annual report, published last month, showed Duffy was awarded a £500,000 signing-on bonus when he joined the lender in June, giving him a total pay package of £1.35 million in his first few months in the job.
Chairman Jim Pettigrew added: “Over the past few years we have made significant efforts to strengthen not just our financial position, but our risk profile and our governance structures. We are now in a position to pursue our own strategic objectives, priorities and opportunities as a stand-alone business.”