Shawbrook is targeting a share price range of 350p to 390p when it debuts on the London Stock Exchange early next month, the challenger bank said on Tuesday.
The estimated price range means the group will boast a market capitalisation of £1.8billion to £2billion after the 4 November initial public offering.
Shawbrook hopes to raise £50million from the IPO, which was delayed by market turmoil earlier in the year.
The debut comes amid a flurry of other IPO announcements in a boost for the City after a prolonged drought of new listings in recent years.
Beauty Tech Group – whose products are favoured by the likes of Kim Kardashian and Serena Williams – and US data centre giant Fermi made their London debuts recently.
Tinned tuna firm Princes, whose brands include Branston baked beans and Napolina olive oil, has also said it plans an IPO.
Retail investors can back the IPO for a minimum of £250
And speculation is mounting that digital bank Revolut is considering a dual listing in London and New York.
Retailbook are facilitating retail access to the Shawbrook IPO via most major investment platforms, with a minimum application of £250.
Investors must apply to take part in the retail offer by 5pm on 29 October.
Shawbrook on Tuesday also confirmed on Tuesday the group and its main shareholder Marlin will not sell shares for at least 180 days after IPO – known as a lock-up period.
The company’s CEO, CFO and other top executives have agreed to staggered lock-up arrangements for a period of two years from admission.
It is expected that up to 21 per cent of Shawbrook’s shares will be held in public hands if demand is strong enough.
Elliot Reader, a director within investment bank Houlihan Lokey’s financial technology group, said: ‘If executed well, Shawbrook’s IPO could help restore credibility to listings as a viable route for sponsors in a market that has seen a scarcity of public offerings in recent years.
‘A successful float has the potential to re-energise London’s IPO pipeline, particularly for domestic-focused financial firms.
‘While some peers, such as Monzo or Revolut, are reportedly weighing US or dual listings, Shawbrook could demonstrate that London remains a credible venue for high-profile financial IPOs.
‘Beyond the immediate market impact, the listing could also provide a useful valuation benchmark in the specialist banking and finance sector, which in recent years has seen far more take-private than public listing activity.
‘Overall, it represents an important signal for sponsors and investors considering the UK market as a route for exits or capital raising.’
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