Private Equity-Backed Shawbrook Eyes London IPO in Boost to Market
Shawbrook Bank is preparing to launch its initial public offering in London, with an announcement potentially coming as soon as Thursday, according to multiple reports. The specialist lender, backed by private equity firms BC Partners and Pollen Street Capital, could be valued at up to £2 billion in the upcoming IPO. This marks a revival of Shawbrook's previously paused listing plans, which were put on hold earlier this year amid market turmoil.
The potential IPO comes at a critical time for the London Stock Exchange, which has experienced a significant downturn in listings activity. Data reveals the LSE has fallen to 23rd in global rankings for IPO destinations, with a mere £184 million raised in the first nine months of the year. This represents a dramatic decline from the £17 billion raised in 2021 and makes 2025 the worst year for listings in over three decades, creating a challenging environment for new market entrants.
Shawbrook's financial performance provides a solid foundation for the potential listing. The commercial and retail bank reported a 35% jump in profit before tax to £168.6 million in its half-year results, while its loan book grew 14% to £17 billion. Deposits also increased 11% to £16.7 billion, and the bank's CET1 ratio—a key indicator of financial health—edged up 0.1% as the lender strengthened its core capital position.
City officials are hopeful that a successful Shawbrook float could stimulate renewed interest in London listings. Investment bank Cavendish, the market leader for AIM-listed firms, noted there is a solid pipeline of both public and private transactions including potential IPOs and ongoing public M&A activity. Shawbrook, which provides credit facilities to businesses and mortgages to professional landlords, had previously been listed before being acquired by its current private equity owners in 2017.
