Scotland business

Clydesdale Bank price set ahead of flotation

Clydesdale Image copyright Reuters

National Australia Bank (NAB) has valued the Clydesdale Bank at between £1.5bn and £2bn ahead of its flotation.

NAB, which plans to demerge Clydesdale next month, set the price for shares in the Scottish bank at between 175p and 235p a share.

The Australian bank is expected to demerge 75% of Clydesdale to its shareholders.

The remaining shares will be sold in the Initial Public Offering (IPO) in February.

Clydesdale, which also operates Yorkshire Bank, said last week that trading in the three months to December was in line with expectations.

NAB, which bought the business in 1987, said it planned to quit the 177-year-old Scottish bank in 2014 after facing a consumer backlash over methods used to sell loan insurance.

Clydesdale shares are slated to be listed on the London stock exchange on 2 February after final pricing on the same day.

The Australian lender also said it may choose not to proceed with IPO or proceed with a smaller offering, in which case it would retain some ownership in the bank.

Australia's major banks are seeking to raise cash by issuing shares and selling non-core business units after new rules require them to have a greater amount of cash in reserve as a buffer for their loan books.

More on this story

Related Internet links

The BBC is not responsible for the content of external Internet sites