Shares in David Duffy's Clydesdale Bank rise in debut

Shares in Clydesdale Bank now run by former AIB boss David Duffy rose up to 2.4% yesterday in their London debut, valuing the British lender at about £1.62bn (€2.14bn).

The lender’s shares were priced towards the lower end of a 175p-235p indicative range, which some analysts had considered aspirational given recent falls in share markets.

The sale of shares in the bank will also be watched closely here, as the outgoing government had pledged to an initial 25% in AIB if it were returned to power after the election.

However, the turmoil of global stock- markets in the last few weeks has raised the first questions about the prospects for IPOs this year.

Last week, UK chancellor George Osborne cited “economic responsibility” and “turbulent” markets for his decision to postpone a further sale of shares in Lloyds Bank owned by the British government.

National Australia Bank, which bought Clydesdale in 1987, had earlier said it would sell 25% of the unit in the IPO and float the rest to its shareholders.

Clydesdale, which traces its roots to Victorian Glasgow, was expected to begin trading on Tuesday, but the listing was postponed as the bank had to update its listing prospectus after a request for more information from an unnamed rating agency.

Clydesdale’s Mr Duffy said yesterday the lender may consider joining bidders for Williams & Glyn, the British consumer bank put up for sale by Royal Bank of Scotland, as the unit draws interest from an increasing number of other banks.

“There has been a request for us to participate in a review of what proposals they have for their Williams & Glyn structure,” Mr Duffy said.

“We’ll look at it in a purely agnostic context to understand what it is. Only after we understand what that particular bank is would we ever consider whether we’re going to proceed,” he said.

RBS said last month it would sound out potential buyers for Williams & Glyn, which has about 300 UK branches, after receiving a number of approaches.

Britain’s largest government-owned lender must spin off the Williams & Glyn unit by the end of 2017 to meet EU state-aid rules related to its £45.5bn (€60bn) bailout crisis.

“Like others out there, we would be viewed as a consolidation candidate,” Mr Duffy said.

Spain’s Banco Santander is preparing an offer for Williams & Glyn, while billionaire Richard Branson’s Virgin Money has also signalled interest, Sky News reported. Secure Trust Bank is also mulling an offer, according to The Sunday Times.

Agencies and Irish Examiner staff