Shawbrook Group has initiated discussions with potential investors for an initial public offering (IPO) of the business-focused lender, amidst speculation in the City about potential banking tax increases in the upcoming November Budget.
Sky News has learned that Shawbrook and its advisors have been conducting a series of pilot-fishing meetings this month as they contemplate the timing of a flotation.
BC Partners and Pollen Street Capital, the private equity firms, initially aimed to launch a London listing in the first half of this year, but have now postponed this to sometime before the end of 2025.
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Sources close to the company indicated on Friday that while a flotation in the second half of the year is still possible, the delayed timing of Rachel Reeves’s Budget suggests that a stock market return in 2026 is increasingly likely.
The Treasury has refrained from commenting on the growing speculation that the chancellor may turn to the UK banking sector to address a significant fiscal shortfall.
Pilot fishing meetings are conducted to gauge investor sentiment towards a potential deal before formally launching an IPO process.
During the summer, Sky News reported that Shawbrook was in discussions to acquire ThinCats, a lender to medium-sized businesses, in a deal valued at around £180m.
This deal, which was subsequently confirmed, has raised expectations that Shawbrook could achieve a public market valuation exceeding the previously estimated £2bn earlier this year.
Shawbrook, with nearly 1,600 employees, serves well over 500,000 customers.
Established in 2011, it was founded as a specialized savings and lending institution, offering loans for home improvement projects, weddings, as well as business and real estate lending.
In recent years, it has explored various significant corporate transactions, including mergers with or acquisitions of competitors such as Metro Bank, Starling Bank, and the Co-operative Bank.
BC Partners and Pollen Street each own equal stakes in Shawbrook, with the management team also holding a minority stake.
The bank is led by Marcelino Castrillo, chief executive.
Both Shawbrook and Pollen Street have chosen not to comment.