Shawbrook to list on LSE with £2bn valuation

Shawbrook is heading for a London Stock Exchange listing early next month, with projections suggesting its initial public offering will value the specialist SME lender at between £1.8bn and £2bn. The move comes months after the bank’s first attempts to go public were put on hold following the turmoil in the markets caused by US President Trump’s tariffs announcements.

In a regulatory statement, Shawbrook said the offer will comprise new shares to be issued by the company, with the intention to raise £50m of net proceeds, and existing shares to be sold by the company’s existing sole shareholder, Marlin Bidco. In addition, it is expected that shares representing up to a further 15% of the offer would be made available pursuant to an over-allotment option.

Shares will be priced at between £3.50 and £3.90, with final pricing due to be announced on October 30.

In its announcement of its intention to float on the London Stock Exchange, Shawbrook highlighted its growth trajectory, saying that from 31 December 2013 to 30 June 2025, its loan book grew from £1.4bn to £17bn, while underlying profit before tax grew at a compound annual growth rate of 30% with a 20% median adjusted return on tangible equity.

In its update on Q3 2025 trading since 30 June 2025, Shawbrook reported continued strong loan book growth, with the loan book increasing to £18.3bn (including structured asset sales) as at 30 September 2025.

The bank said this loan book growth was driven by organic originations, which were approximately £1.5bn for the three-month period, complemented by the contribution from the strategic acquisition of the ThinCats fintech group (which had a £0.6bn loan book at completion of the transaction).

Consolidation in prospect

In the float prospectus, Shawbrook stated: “The directors believe that the offer will position the group well for the next stage of its evolution, supporting its ambitious growth plans. The offer is expected to further enhance Shawbrook’s profile and brand recognition and help the group continue retaining and incentivising key management and employees, as well as providing Shawbrook with access to a wider range of potential sources of capital.

“The offer will also naturally allow Shawbrook’s existing sole shareholder, Marlin Bidco Limited, to realise part of its investment in Shawbrook, after many years of success and investment under private ownership.”

Shawbrook has a strong track record of selective M&A deals, having completed 24 M&A transactions. Explaining the move to go public Shawbrook said it is well placed to lead further consolidation in the market given its active pipeline of potential M&A opportunities and its proven ability to identify, acquire and supercharge lending platforms.”

The bank’s published target is almost double the size of its loan book to approximately £30bn by the end of its financial year ended 31 December 2030 (the “30 by 30 Target”).