Shares in focus: Should you avoid the TSB float?

High-street bank TSB is to be floated on the stock market. Should you snap up some shares? Phil Oakley investigates.

It's no exception to my IPO golden rule, says Phil Oakley.

The market for new share issues, orinitial public offerings (IPOs), is booming. But this is not necessarily good news for investors. Too often, IPOs are designed to maximise value for the seller and leave little or nothing on the table for the buyer. Brokers and advisers love them, because they earn fat fees.

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Offer price220p-290p
Market capitalisation£1.1bn-£1.45bn
Net asset value (March 2014)£1.58bn
Price-to-book-value ratio0.7-0.92 times
Equity as % of total assets5.9%
Loans to deposits99%
Dividend yieldn/a

Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.