TSB jumps 12% on first day of trading

TSB Banking Group surged 12 per cent on its first day of trading as Lloyds Banking Group sold a 35 per cent stake in the lender, more than initially planned, in an initial public offering.

TSB shares, which were priced at 260 pence in the IPO, closed up 30 pence at 290p in London, valuing the lender at £1.45 billion.

"It was priced to go and in this case they're going," said Gary Greenwood, analyst at Shore Capital.

“The company wanted to make sure it got the initial tranche away.”

The offering priced TSB at £1.3 billion, less than its £1.5 billion book value.

Lloyds has to sell TSB Banking Group to satisfy regulators after receiving a British government bailout of more than £20 billion during the financial crisis. – (Bloomberg)