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Low Clydesdale float hits owner's shares

Clydesdale Bank has been floated with a share price at the lower end of earlier estimations, causing the shares of its owner National Australia Bank (NAB) to fall by 5.7%.

NAB priced the Clydesdale shares in an initial public offering (IPO) at 180p. The IPO amounts to selling 25% of the Glasgow-based bank, the rest will be floated to shareholders later today.

David Duffy, chief executive of Clydesdale, called it a ‘landmark’ day for the bank as it moves ‘towards becoming an independent group for the first time in almost a century.’

The demerging from NAB, which has owned Clydesdale since 1987, and floating process comes after the UK bank was required to fund millions of pounds worth in compensation to customers for mis-selling financial products.

Clydesdale chairman Jim Pettigrew said ‘I welcome our new shareholders and thank them for the confidence they have shown in our business.’

The Australian bank has been keen to sell Clydesdale for several years and with the flotation today, has now divested all its UK assets.

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