Shawbrook owners mulling second listing attempt in potential boost for City

The owners of Shawbrook Bank are reportedly exploring another IPO for the lender after plans for a £2bn blockbuster listing fell through two years ago.

Private equity firms BC Partners and Pollen Street Capital, which bought the challenger bank for £868m in 2017, have approached some City investors about a public listing, according to The Times.

The firms reportedly abandoned plans to either sell or list the specialist lender in 2022 at a valuation of £2bn amid volatile markets and a dealmaking slump.

Pollen Street previously floated Shawbrook in London at a valuation of £725m in 2015, before it was taken private again with the help of BC just two years later.

The bank posted record pretax profits of £233m in 2022, with its loan book growing to £12.6bn and deposits reaching £13.4bn as of last September.

Shawbrook was reportedly a serious suitor to buy Co-op Bank last year and made an offer for Metro Bank that was later rejected.

The London Stock Exchange has been hit by a dearth of big-ticket listings in the last year, while a number of unicorns have sought higher valuations overseas.

Listings slumped to a 13-year low in 2023 as trading volumes were hit by inflation worries, interest rate hikes and international conflict.

The biggest IPO of the year, CAB Payments, damaged sentiment even further, with the company’s stock currently trading 68 per cent lower than when it debuted last July.

Shareholders of travel giant Tui are due to vote on the board’s recommendation to delist from the LSE on Tuesday in what could be yet another blow to the bourse.

City investors are hoping for a rebound this year amid schemes from the Treasury and Financial Conduct Authority to make London a more attractive listing venue.

BC, Pollen Street and Shawbrook did not provide a comment when approached by City A.M.