Several years ago buying shares in UK based banks would have been considered an ill advised moved, however things have changed and buying shares in banks is once again becoming a popular choice. It is such a turnaround that has lead to an invested interest in the newest bank to issue an IPO. Lloyds Banking Group is splitting its assets and allowing TSB to operate on its own once again, and traders will shortly be given the chance to invest in TSB shares. The question for many is, that after two decades away from the stock market, how do traders go about buying TSB shares.
As mentioned above, TSB haven’t issued TSB shares or been a name on the stock market for over ten years, but they are far from a new company. TSB started their banking operations way back in 1810 and since then they have risen through the ranks to become one of the UK’s leading banks. The credit crisis eventually led to TSB and Halifax merging with Lloyds Banking Group, bringing their run as an individual entity to an end. But, with Lloyds Banking Group now being ordered to split their assets, this has given TSB the chance to return as a name of their own and one that is sure to be embraced by the banking public.
TSB will look to operate on a similar sort of business model to Lloyds, being a bank that relies on the current account market and in some regards the mortgage market as well. This means in the world where people are switching accounts regularly, growth for the bank after the IPO of TSB shares is envisioned. They are positioned to enter the market amidst a price war, meaning that if they hit the ground running TSB could quickly climb the banking popularity ladder.
One thing TSB is sure of is that they need to ready themselves to enter the market while it is in a “cool-period”. Their plan includes an incentive offer that is sure to tempt many; investors can get 1 free TSB share for every 20 TSB shares they buy. This is up to the value of £2,000, meaning it also a low-risk option for those who wish to test the waters. TSB has also worked quickly to quash rumours that the profits of the sale may head towards the British government, which all but confirms that the incentives are there for the purpose of the buyers.
Why choose TSB shares?
Investors who have chosen to buy shares at a bank IPOs previously may have got their fingers burnt, thus making them wary of TSB shares and their public offering. But, TSBs traditional stature and structure will definitely be something that appeals to those who have braved a bank’s IPO before. At present TSB and TSB shares are valued in the middle of its forecasted range, with a stable and reputable market capitalisation of 1.45 billion. This may not make it into the proverbial big four (Barclays, RBS, HSBC and Lloyds) but the figure is representative of the image TSB wishes to project.
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