Shawbrook Bank’s London IPO signals UK market revival amid US competition

Shawbrook Bank plans to list on the London Stock Exchange in a move that could valuate the specialist lender at up to £2 billion, reflecting a boost for UK capital markets amid mounting competition from US exchanges and government efforts to revitalise London’s IPO scene.

Shawbrook Bank has announced plans to list on the London Stock Exchange, marking a significant move that could value the specialist lender at up to £2 billion. This initial public offering (IPO), delayed earlier in the year due to market volatility, signals a notable vote of confidence in the UK’s capital markets at a time when London is striving to revive its stock market appeal amid intensified competition from rival exchanges such as New York.

The flotation is expected to support Shawbrook’s growth strategy by increasing its profile in the UK while providing an opportunity for its private equity owners, BC Partners and Pollen Street, to realise some returns on their investment since taking the company private in 2017. According to CEO Marcelino Castrillo, this IPO milestone reflects the bank’s evolution into a scaled and diversified platform with significant growth potential. Shawbrook plans to offer a minimum free float of 10%, targeting a blend of retail and institutional investors, with ambitions to be included in FTSE indices.

Founded in 2011, Shawbrook has expanded impressively, growing its loan book from £1.4 billion in 2013 to £17 billion as of June 2025, covering specialist lending to professional landlords, property investors, complex income homeowners, and motor finance customers across both mass market and luxury segments. The bank has set an ambitious “30 by 30” target to nearly double this portfolio to around £30 billion by 2030, alongside delivering mid-to-high teens annual growth in underlying profit before tax and maintaining a strong return on tangible equity. Recent acquisitions, including The Mortgage Lender in 2021 and Bluestone Mortgages in 2023, further underpin its expansion plans.

This IPO is part of a broader effort by the UK government to rejuvenate the London stock market, which has seen a significant slowdown in listings in recent years. Government figures reveal that London has fallen behind cities like Mexico and Singapore in IPO fundraising, while some large UK-listed companies with substantial US business or shareholders are reportedly considering moves to American exchanges. To counter this trend, influential figures such as Chancellor Rachel Reeves are actively engaging with potential listing candidates—including OakNorth, Starling, and others—at events hosted by major investment banks such as Goldman Sachs and JP Morgan. The government is reportedly contemplating incentives like a stamp duty holiday on newly-listed shares, responding to calls for scrapping the 0.5% tax on share trading entirely to enhance London’s attractiveness.

Shawbrook’s announcement comes amid a recent flurry of listings after a particularly subdued year for London’s IPO market. Other businesses including Beauty Tech Group, Princes (known for brands like Branston baked beans and Napolina olive oil), and US data centre giant Fermi have also debuted in London. There is mounting speculation that digital banking giant Revolut may pursue a dual listing in London and New York. Industry experts, such as Laura Janssens of Berenberg, suggest that the end of 2025 could mark a turning point for UK IPO activity, rekindling optimism that London can reclaim its status as a global financial hub.

Victoria Scholar, head of investment at Interactive Investor, reflected this optimism by highlighting Shawbrook’s potential flotation as a positive development for London’s stock market. Nonetheless, concerns remain following AstraZeneca’s recent decision to list directly on Wall Street, underscoring the ongoing challenge London faces in retaining major companies. Broker analysis underscores this tension; AJ Bell has identified ten London-listed firms worth approximately £620 billion that have strong US ties and may be tempted to switch exchanges.

Shawbrook’s IPO candidly embodies the current crossroads of UK capital markets, representing both the opportunities for growth and recovery, as well as the competition and challenges London must navigate to re-establish itself as a premier venue for public listings.

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Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
10

Notes:
The narrative is fresh, with the earliest known publication date being October 6, 2025. The report is based on Shawbrook Bank’s official announcement, indicating high freshness. No discrepancies in figures, dates, or quotes were found. The narrative does not appear to be recycled or republished across low-quality sites. The update justifies a higher freshness score but should still be flagged. ([reuters.com](https://www.reuters.com/business/finance/shawbrook-plans-london-ipo-2025-10-06/?utm_source=openai))

Quotes check

Score:
10

Notes:
The direct quote from CEO Marcelino Castrillo, “We have achieved real scale, and our current markets are large and growing, supported by attractive tailwinds,” is unique to this report. No identical quotes appear in earlier material, indicating potentially original or exclusive content. ([reuters.com](https://www.reuters.com/business/finance/shawbrook-plans-london-ipo-2025-10-06/?utm_source=openai))

Source reliability

Score:
10

Notes:
The narrative originates from Reuters, a reputable organisation known for its accurate and timely reporting. This enhances the credibility of the information presented. ([reuters.com](https://www.reuters.com/business/finance/shawbrook-plans-london-ipo-2025-10-06/?utm_source=openai))

Plausability check

Score:
10

Notes:
The claims about Shawbrook Bank’s IPO plans are plausible and align with recent developments in the UK’s capital markets. The narrative is consistent with other reputable outlets, and the language and tone are appropriate for the topic and region. No excessive or off-topic details are present, and the tone is neither unusually dramatic nor vague. ([reuters.com](https://www.reuters.com/business/finance/shawbrook-plans-london-ipo-2025-10-06/?utm_source=openai))

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary:
The narrative is fresh, original, and sourced from a reputable organisation. The claims are plausible and consistent with other reputable outlets, with no significant issues identified.