The bank had initially planned to place 25% of shares. The demand was also reflected in an admissions price of 260p, just above the mid-way point of an initial 220p-290p-range. Approximately 30% of the shares are being sold to retail investors.
At 9.00 the shares had continued to climb, rising to 295p.
The spin-off of the banking division under the historic TSB brand is widely perceived as a test-run for upcoming state-disposals of taxpayers’ continued stake in the banking system after 2008.
Based on the initial placement price the company, which automatically becomes one of the largest high street ‘challenger bank’ outside the big four, will have a market capitalisation of £1.3 billion.
‘TSB has a national network of branches, a strong capital base, robust liquidity and significant economic protection against legacy issues,’ said Lloyds chief executive Antonio Horta-Osorio.
‘It is already operating on the UK high street and is proving to be a strong and effective challenger, further enhancing competition in the UK banking sector.’
TSB has a 6% share of the UK retail lending and around two thirds of its mortgage portfolio reportedly consists of capped variable-rate loans which will gain from rate rises.