Shawbrook plans £2B London IPO, offering boost to sluggish market

British digital lender Shawbrook announced on Monday that it plans to list on the main market of the London Stock Exchange in a flotation expected to value the bank at close to £2 billion.

The move comes amid a renewed spark of IPO activity in the city following a prolonged drought of listings, and could mark one of London’s largest stock market debuts in years.

The Brentwood-based lender, which specialises in serving small businesses and niche retail banking segments, said the offer would combine newly issued shares with existing shares sold by its current owner, Marlin Bidco Limited.

Shawbrook said an IPO would "position the group well for the next stage of its evolution, supporting its ambitious growth plans."

"An IPO is expected to further enhance Shawbrook's profile and brand recognition and help the Group continue retaining and incentivising key management and employees, as well as providing Shawbrook with access to a wider range of potential sources of capital," it added.

Chief Executive Marcelino Castrillo said the IPO would mark an important milestone in Shawbrook’s growth trajectory, describing the company’s transformation into a “scaled and diversified banking platform” over the past decade.

“When Shawbrook was founded, we saw that large parts of the UK economy were unable to access the capital needed to grow,” he noted.

Boost for sluggish London listings

London has struggled in recent months to attract high-profile listings, with the first nine months of the year yielding just $210 million from IPOs on the LSE’s main and alternative markets combined, according to Dealogic.

In comparison, $52.8 billion was raised on the New York Stock Exchange and Nasdaq over the same period.

London has slipped to 23rd place in the global IPO rankings.

The announcement adds to a week of renewed momentum in London’s equity markets, which saw Texan energy and data centre company Fermi unveil plans for a dual London and Nasdaq listing, tinned tuna producer Princes signal a £1.5 billion offering, and Beauty Tech debut with its LED face mask products in a £320 million listing.

Shawbrook’s arrival would place it alongside these high-value entrants, injecting optimism into the market ahead of an anticipated busier 2026 for the LSE.

Shawbrook's plans to double its loan portfolio by the end of 2030

Shawbrook, established in 2011, employs nearly 1,600 people and serves around 550,000 customers.

The bank focuses on providing mortgages to professional landlords, property investors, and individual homeowners with complex income or credit profiles, alongside motor finance catering to both the specialist mass market and high-end luxury segments.

Since 2014, its loan book has expanded from £1.4 billion to £17 billion as of June this year, encompassing small business and real estate lending.

The group aims to almost double this portfolio to around £30 billion by the end of 2030 under its “30 by 30” target.

Over the medium term, Shawbrook seeks to deliver mid-to-high teens annual growth in underlying profit before tax and sustain an adjusted return on tangible equity in the high teens.

Wider IPO outlook

Observers believe next year could prove more fruitful for London’s IPO market, with names such as Hg-backed Visma—valued at €19 billion—set to choose London over Amsterdam, along with cyber insurance specialist CFC and fellow digital lender Monzo lining up potential offerings.

For Shawbrook, the upcoming listing represents an opportunity to cement its status as a significant player in UK banking, providing a scaled funding base for sustained expansion and cementing its position in a market showing early signs of revival.