Shawbrook Bank IPO: what to know and how to buy shares

When could the Shawbrook Bank IPO take place?

Shawbrook Bank Bank’s Initial Public Offering (IPO) may come as soon as during the first six months of 2025 — with Sky news reporting in January 2025 that its private equity owners BC Partners and Pollen Street Capital have lined up Goldman Sachs to spearhead the launch, with Barclays potentially also being brought in to support.

The two companies hold equal stakes in Shawbrook Bank, with its management team also owning a smallholding. The company previously attempted to IPO in 2022 but was forced to abandon the plans due to weak market conditions, with its business clients reeling from inflation and high energy costs.

In Q3 2023, Shawbrook Bank approached Metro Bank about a possible takeover — which was rejected — and has also previously spoken to the Co-operative Bank about a £3.5 billion all-share merger, though the latter was instead sold to Coventry Building Society.

An IPO would be a welcome boost for London’s ailing IPO market, and with analysts speculating it could reach a valuation of some £2 billion, Shawbrook Bank would easily rank as one of the largest companies to list in the City in 2025.

How to buy Shawbrook Bank shares if the company lists

If Shawbrook Bank do end up listing in the UK, you can buy their shares from £3 commission with us. That's the rate if you've traded 3+ times in the previous calendar month, otherwise our standard fee is £8.

You'll be able to invest in Shawbrook Bank right away on the day of the listing.

1. Do your research on IPOs
2. Open an account through our IG Invest app or online with our share dealing account
3. Search for Shawbrook Bank on our share dealing platform
4. Choose the number of shares or amount of money you wish to invest
5. Place your deal

When dealing shares, you own the stock and become a shareholder in the company. You'll profit if the share price rises above the point at which you bought, or potentially from any dividends paid. You could get back less than you put in.

You can also trade the Shawbrook Bank IPO using leverage through a variety of products with us. This means you could gain or lose money quickly and could end up losing more than your initial deposit. This is higher risk and requires thorough risk management.

What will Shawbrook Bank be valued at and what will the share price be?

As noted above, Sky news sources speculate that the company could list with a valuation of around £2 billion — and you might expect a share price at around the £1 mark to compete on a psychological level with competitor and former suitor Metro Bank.

Shawbrook Bank currently enjoys an annualised loan book of £15.1. billion, up from £13.3 billion in 2023 and driven by strong net lending volumes across its core specialist real estate and SME markets — and saw profit before tax of £124.5 million, though this was down from £149.3 million in the same period the year before due to falling net interest margin.

The business has an underlying cost to income ratio of 42.1% and sports a 14.5% underlying return on tangible equity. Its CET1 ratio is a healthy 12.6%, while its total capital ratio stands at 15.5%.

In Q3 results to 30 September 2024, Shawbrook Bank noted it had a deposit book of £15.2 billion — which is growing at an annualised rate of 16%.

While some critics feel the £2 billion valuation is perhaps a tad ambitious, the financial metrics appear solid, and demand for a new financial sector IPO may be strong especially given the elevated interest rate environment.

What is Shawbrook Bank’s business model?

Shawbrook Bank began in 2011 when Pollen Street Capital, a former division of Royal Bank of Scotland, launched the brand by acquiring and rebranding Whiteaway Laidlaw Bank.

It now sports three customer franchises and 15 customer verticals — serves around 560,000 customers and enjoys a Trustpilot score of 4.6 out of 5. Shawbrook Bank now has almost 1,600 employees, with a strong engagement score of 84%.

The bank offers the standard mortgages, personal loans and savings accounts — but specialises in loan products for small and medium-sized enterprises (SMEs), in addition to loans for home improvement projects and weddings. The bank has become a familiar part of the mid-tier banking landscape, which includes rivals such as OneSavings Bank, Aldermore Bank and Paragon Bank.

The bank recently signed a deal with nCino to automate its loan origination and portfolio management processes, and also acquired JBR Auto Holdings, a UK specialist motor finance lender focused on high-end vehicles in September 2024. It then completed a £399 million securitisation of owner-occupied loans originated by Bluestone Mortgages, with the transaction structured to provide both external funding and capital optimisation benefits.

There are several economic moats surrounding the bank: a niche lending focus which may be overlooked by larger competitors, a premium customer experience, and significant investment into technology and innovation which may only be viable as a smaller operator where larger rivals move slower.

In Q3 results, CEO Marcelino Castrillo noted that ‘Demand for the premium experience, flexibility and certainty we offer across our specialist lending markets remains robust…. Our innovation in the deposit market, with the development of our Digital Savings platform…gives us complete control of the experience we deliver, with intuitive digital journeys and more self-service options.’

The bank considers that the more stable macroeconomic outlook and increasing customer confidence could see further value creation across its SME and real estate core markets.

Why are there Shawbrook Bank ethical concerns?

Perhaps the most well-known ESG issue was when Shawbrook Bank provided funding for timeshare purchases, many of which were later deemed to have been mis-sold to consumers — and thereafter, despite court rulings and a Financial Ombudsman Service decision in favour of the victims, the bank delivered what was arguably a delayed compensation response.

Beyond this specific allegation, common banking governance risks include poor lending assessments, data risks and potential financing of harmful industries — while Shawbrook Bank has not been subject to these thus far, they remain ESG factors to consider.

The company highlights its efforts to play a part in the transition to net zero, and has embedded ‘climate into our business DNA.’ Meanwhile on the social front, it plans to ‘boost social mobility, champion equality and diversity and create an inclusive environment.’

Shawbrook Bank-related investments

While you wait for the Shawbrook Bank IPO, there are several similar investments to consider. Rivals Metro Bank and Aldermore may be the closest comparators — though the FTSE 100 also offers several much larger banks including UK-focused Lloyds.

For investors seeking some diversification, the SPDR S&P Regional Banking ETF may be an interesting option. This ETF is focused on the US instead of the UK but tracks an index of regional bank stocks in the broader S&P indices and has more than 100 components. It’s arguably lower risk than many other ETFs due to its modified equal weight index and sports an expense ratio of just 0.35%.

Shawbrook Bank IPO summed up

• Shawbrook Bank Bank’s Initial Public Offering (IPO) may come as soon as during the first six months of 2025
• Shawbrook Bank currently enjoys an annualised loan book of £15.1. billion, up from £13.3 billion in 2023
• The company could list with a valuation of around £2 billion
• A niche lending focus which may be overlooked by larger competitors, a premium customer experience, and significant investment into technology and innovation