Clydesdale valued at £1.6bn in delayed flotation

Clydesdale Bank's flotation on the stock market got off to a vibrant start yesterday, with the newly issued shares jumping 6.7 per cent in the first session to value the Glasgow-based lender at £1.69 billion.

CYBG chief David Duffy said the Glasgow-based lender was in 'great shape'

David Duffy, chief executive of Clydesdale Bank and sister bank Yorkshire, spun off on the market by former owner National Australia Bank, commented: “This is truly a landmark day for CYBG as we move towards becoming an independent banking group for the first time in almost a century and we are delighted to be listing on both the London Stock Exchange and the Australian Securities Exchange.

“CYBG [the stock market name for the group although the traditional brand names remain] is in great shape to begin this exciting new chapter.

“With the IPO process successfully behind us, all of our energy will be dedicated to delivering industry leading service for our customers and improved and sustainable returns for our new and future shareholders from around the world.”

CYBG had priced the shares at 180p, towards the lower end of a price range of 175p to 235p amid market volatility connected to the Chinese slowdown, a falling oil price and worries about any Brexit vote for the UK to leave the European Union.

They closed up 12p at 192p. It was a turnaround from 24 hours earlier when Clydesdale had put its planned London flotation back a day after revealing that a ratings agency had asked for “certain financial information relating to its assessment of Clydesdale Bank’s short- and/or long-term deposit rating”.

Jim Pettigrew, CYBG’s chairman, said: “Today marks a very important milestone in our 177 year history as we begin life as an independent listed company.

“I welcome our new shareholders and thank them for the confidence they have shown in our business. We embark upon this exciting new chapter for CYBG with a strong customer focussed franchise, a large and loyal customer base and a first class management team determined to deliver on our strategy.”