British lending company Shawbrook raised £90m on its first day of trading, highlighting the value in banks heavily associated with small businesses.
Shawbrook, a specialist lending company and savings bank founded in 2011, saw its shares rise 5% to 304.25p in London yesterday, giving the bank a market value of £756m.
The SME specialist bank, whose Chairman is former Royal Bank of Scotland CEO George Mathewson, provides corporate asset finance, block discounting, wholesale finance and healthcare finance to small businesses. In 2014, Shawbrook’s total lending reached more than £2.3 billion.
This brand new injection of funds paves the way for a much-needed increase in lending to SMEs. While the rate of new companies being set up is encouraging, most struggle to grow. Just 30,000 SMEs fall into the “medium-sized” category.
Shawbrook says that it hopes to buck that trend.
‘‘Our focus remains UK customers with a fresh, pragmatic approach to lending and savings,” said Richard Pyman, the bank’s CEO. “We are delighted that our initial public offering has been successfully received.”