The owners of Shawbrook Group, a mid-sized British specialist lender, are reportedly preparing plans for a stock market flotation that could value the company at over £2 billion.

According to finance press reports, private equity firms BC Partners and Pollen Street Capital are in advanced discussions to appoint Goldman Sachs to oversee the potential initial public offering (IPO).

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Shawbrook, founded in 2011, employs around 1,600 people and serves approximately 550,000 customers. Established as a specialist lender, the bank offers products such as loans for home improvements, weddings, business financing, and real estate. It is part of a cohort of mid-tier lenders, including Shawbrook Bank, Shawbrook Asset Finance, OneSavings Bank, Aldermore Bank, and Paragon Bank, which have emerged as significant players in the UK banking sector since the financial crisis.

This is not the first time Shawbrook has explored going public. Its owners previously engaged Bank of America and Morgan Stanley in 2022 to evaluate a sale or IPO but shelved those plans due to volatile market conditions. Reports suggest that this latest push to take Shawbrook public is driven by a desire to capitalize on improving market stability, although sources indicate that an outright sale remains an alternative option.

Challenges and opportunities

The potential listing comes amid a challenging environment for London’s IPO market, which has experienced a net outflow of companies since the global financial crisis. Reports highlight that high inflation and rising energy costs have created additional pressures for challenger banks like Shawbrook, impacting their small and medium-sized enterprise (SME) customers.

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If Shawbrook proceeds with its IPO in the first half of 2025, it could rank among the largest listings in London during this period. Industry observers note that the flotation could provide a much-needed boost to London’s listings arena, which has struggled to retain high-profile companies.

For now, Shawbrook’s IPO remains contingent on market conditions, and no final decision has been made. However, reports suggest that additional investment banks, including Barclays, may be brought on board to support the process.