Exactly how much shares in TSB will make when they go on sale later this month is still unclear, but its parent company,
Why is Lloyds selling the shares?
During the financial crisis
Lloyds now needs to sell that, and is doing so through a float. The initial public offering (IPO) will sell off 25%, but Lloyds has to offload the remaining 75% by the end of 2015.
How many shares can I buy?
You must spend at least pounds 750, as with the Royal Mail IPO, but unlike that offer there is no upper limit on how many you can bid for. At the mid-price range of 255p you would get 294 for pounds 750. If it is over-subscribed, which is unlikely, you might not get the amount requested.
Private investors who buy shares and hold on to them for a year will get one free share for every 20 they bought, up to a maximum of pounds 2,000.
Where can I buy?
The bank cannot sell the shares itself - you have to apply through one of the stockbrokers or sharedealing services acting as "intermediaries", including well-known names such as
You need to be quick because the offer is expected to close on Tuesday
17 June (it's possible some intermediaries may bring the shutters down before that). The price will be announced on Friday 20 June and dealing will start the same day.
A list of intermediaries is on the TSB website - go to tsbshareoffer.equiniti.com/homepage.aspx. Don't forget to find out about any fees they will charge.
Why should I buy?
Unlike other banks, TSB has no legacy issues with mis-selling or other scandals that could cost it money through fines from the regulator - Lloyds will keep all the liability for things such as PPI mis-selling.
The bank has 4.5 million customers already and has room to grow. Of its 631 branches, around 160 used to belong to
Why shouldn't I buy?
Setting up the separate bank has cost money, and winning new business could mean small margins, say analysts. Lloyds has another 75% of the business to sell off in the next 18 months, meaning that the supply of shares will be high and the price could fall.
The head of TSB,
Meanwhile, some might be concerned by the revelation that 45% of its mortgage customers have interest-only mortgages, and that it does not know how some intend to repay their loans.
"What's more, the company is being sold on the prospects of relatively modest growth going forward. IPOs may offer investors some good reasons to buy equity, but this should always be part of a broader investment strategy."
What are the signs? The stand-alone TSB, which boasts 4.5 million customers, has no legacy issues and there's room to grow
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