Lloyds bank prices tsb float below book value

Lloyds Banking Group priced its high-profile flotation of a quarter of its TSB division at 220-290 pence per share on Monday. The expected offering size is 125 million shares. At mid-point

of the price range, TSB's market capitalization would be approximately £1.275 billion ($2.14 billion). Final pricing is expected to be announced on or around June 20. Conditional

dealings will begin on the same day. Oli Scarff | Getty Images The initial public offering (IPO) for 25 percent of the retail banking chain had been seen priced at 70-90 percent of

TSB's book value, according to media reports. Its shares will list on the premium segment of the London Stock Exchange's official list and main market. Retail investors will

receive one free share for every 20 Shares acquired (up to £2,000) and held for a continuous period of one year after the IPO. All 8,600 staff of TSB will be granted £100 of shares to become

"TSB Partners". Lloyds must fully divest of its TSB division of U.K.-only retail banks by the end of 2015, as a condition of the £20 billion bailout it received from the U.K.

government at the height of the 2008 financial crisis. The government originally took a 41 percent stake in the bank, which has now been cut back to 25 percent. It aims is to sell off the

remaining share before the next national election in 2015. FTSE 100-listed Lloyds swung back into profit last year, and reported a 22 percent rise in underlying profit in the first quarter

of 2014. Lloyds shares declined 1.2 percent to trade at 79 pence on Monday, making them the worst perfomers on the FTSE100. However, its stock remains 0.4 percent higher on the year.