Lloyds Sets TSB Offer Price Range 220 To 290 Pence Per Share - Update

(RTTNews) - British banking major Lloyds Banking Group Plc (LYG, LLOY.L) Monday set price range for the IPO of TSB Banking Group Plc of 220 pence to 290 pence per ordinary share.

This followed Lloyds' announcement on May 27, to float 25 percent of the existing ordinary shares in TSB Banking. TSB operates as a separate division within Lloyds Banking Group.

The offering size, which represents 25 percent of TSB's existing ordinary shares in issue, totals 125 million shares. This is prior to any exercise of 10 percent over-allotment option.

At the mid-point of the price range, TSB's market capitalization would be about 1.275 billion pounds.

Lloyds expects to announce the final pricing on or around June 20, with conditional dealings in TSB shares beginning on the London Stock Exchange on the same day.

The company intends to publish the prospectus for the offer later today.

It was on May 27, that Lloyds announced its intention to float TSB, in a move to meet European Commission's ruling related to state aid. Lloyds is required to sell down its remaining stake before the end of 2015. TSB was launched as a standalone brand in September 2013.

TSB has a customer base of 4.5 million retail customers, a comprehensive range of retail banking products and a multi-channel, national distribution model, including 631 branches, which equates to around 6 percent of the retail bank branches in the UK.

Lloyds was required by the European Commission to sell the 631 branches that it re-branded as TSB as a condition that was fixed for receiving a government bailout of 20 billion pounds during the 2008 financial crisis.

LLOY.L is currently trading at 79.21 pence, down 1.17 percent, on a volume of 9.56 million shares.