NAB prices Clydesdale IPO

The major bank is pursuing a 75 per cent demerger of Clydesdale and Yorkshire Bank (CYBG) to its shareholders and a divestment of the remaining 25 per cent by IPO to institutional investors.

NAB said in an ASX update this week that the proposed IPO range has been set at between 175 pence and 235 pence per CYBG share.

“The range equates to a CYBG market capitalisation of approximately £1.54 billion to £2.07 billion [or $3.19 billion to $4.29 billion] and implies a multiple of book value of CYBG FY2015 net tangible assets of 0.56 times to 0.76 times,” it said.

“Subject to NAB finally determining to proceed with the IPO [in whole or part], the final IPO price will be determined by the IPO bookbuild process and is expected to be announced on 2 February.”

NAB has proposed that CYBG shares will be listed on the London Stock Exchange’s main market for listed securities and commence trading on 2 February on a conditional basis, while CYBG CHESS depositary interests (CDIs) will be listed on the ASX and commence trading on 3 February on a deferred settlement basis.

Eligible NAB shareholders can elect to receive either CYBG shares or CDIs under the demerger.

NAB noted that it may not elect to proceed with the IPO or to only proceed with a partial IPO, in which case NAB will retain a shareholding in CYBG.

“The demerger is not conditional on the IPO proceeding, but the IPO is conditional on the demerger proceeding,” the bank said.

[Related: NAB’s ‘torturous and expensive journey’]