Lloyds Banking Group Friday increased the market value of its TSB Unit to 1.3 billion pounds (2.2 billion U.S. dollars) as a result of strong investor demand for the stock market listing.
The pricing of the initial public offering of TSB has been set at 260 pence per share, giving TSB a market capitalisation of 1.3 billion pounds, according to the announcement released by Lloyds Banking Group.
Due to significant investor demand for TSB ordinary shares, the offer size has been set above the expected offer size of 25 percent, said Lloyds.
The offer comprises 175 million existing TSB ordinary shares being sold by Lloyds, representing 35 percent of the 500 million TSB Ordinary Shares that will be in issue at Admission.
Antonio Horta-Osorio, Group Chief Executive of Lloyds Banking Group, said: "The successful initial public offering of TSB is an important further step for Lloyds Banking Group as we act to meet our commitments to the European Commission."
"TSB has a national network of branches, a strong capital base, robust liquidity and significant economic protection against legacy issues," said Horta-Osorio.
"It is already operating on the UK high street and is proving to be a strong and effective challenger, further enhancing competition in the UK banking sector," added Horta-Osorio.
Lloyds was required to sell its entire shareholding in TSB by the end of 2015 under an agreement with the European Commission. (1 pound = 1.7 U.S. dollars)