IPO set at lower price

Clydesdale Bank shares close at premium to flotation price

David DuffyClydesdale Bank shares closed at 192p, a reasonable premium to the 180p flotation price, valuing the company at £1.58 billion.

Conditional trading of CYBG was delayed by 24 hours following an eleventh hour request from a ratings agency for more inforation. It is thought this may lead to a downgrading of its rating.

The flotation price was at the lower end of the expected range and reflects the current turmoil in the market. However, parent company National Australia Bank has stuck by its plans to demerge the business.

Clydesdale has regained its independence for the first time since 1920, but there will be speculation as to how long it, and sister bank Yorkshire, will remain independent. TSB was quickly snapped up after being floated and potential buyers are hovering over Williams & Glyn which will be carved out of Royal Bank of Scotland.

In a pre-flotation statement, David Duffy (pictured), chief executive of Clydesdale and Yorkshire, said: “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 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.”

Mr Duffy said this morning that because of the volatility of the market “setting [the price] at that range was sensible” and the priority was to have “secure execution” of the IPO.

Speaking about its independence, he said: “We will be able to invest in the people, technology and distribution channels…without having to go to a third party.”

The bank would work to earn trust and was committed to the branch structure, he said.

“Branches play a fundamental role in the bank. The advice that people get locally is very important.” He said people around the country had told the bank that generations of their families had been customers.

“The branch structure is fundamental in supporting those relationships and SMEs,” he said.

Jim Pettigrew, chairman, added: “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.”

Admission and dealings


Indicative date

NAB shares commence trading on ASX on an ex CYBG Securities basis

3 February 2016

Latest time and date by which CDI Election Forms, Share Election Forms and Sale Facility Forms must be received by the NAB Share Registry if you wish to make a Security Election or participate in the Sale Facility

3 February 2016, 5:00pm (AEDT)

Expected commencement of conditional trading of CYBG Shares on the LSE under the ticker symbol “CYBG” and ISIN number GB00BD6GN030

3 February 2016, 8:00am (GMT)

Expected commencement of deferred settlement trading of CYBG CDIs on ASX under the ticker symbol “CYB”

4 February 2016, 11:00am (AEDT)

Demerger implementation date

8 February 2016

UK admission of CYBG Shares: CYBG Shares commence trading on an unconditional basis

8 February 2016, 8:00am (GMT)

Expected commencement of trading of CYBG CDIs on ASX on a normal settlement basis

17 February 2016

Anticipated latest date for dispatch of Sale Facility Proceeds to Selling Shareholders (or ShareGift, if a Small Shareholder who is a Selling Shareholder so elects)

4 April 2016

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