February 3, 2016 / 8:39 AM / 2 years ago

Clydesdale Bank rises more than 2 percent in London debut

A sign hangs outside a Clydesdale Bank in Edinburgh, Scotland, Britain February 3, 2016. REUTERS/Russell Cheyne

LONDON (Reuters) - Shares in Clydesdale Bank Plc (CYBGC.L) rose as much as 2.4 percent in early trading on Wednesday in their London debut, valuing the nearly 180-year-old British lender at about 1.62 billion pounds ($2.33 billion).

Clydesdale shares were up 0.6 percent at 181 pence at 0901 GMT after being priced at 180 pence on Monday in a spin off by National Australia Bank Ltd (NAB.AX), Australia’s biggest lender by assets.

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

NAB, which bought Clydesdale in 1987, had earlier said it would sell 25 percent 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.

NAB had said the request could result in a downgrade of the Clydesdale’s deposit rating, and that the rating could also be placed on credit watch.

Reporting by Richa Naidu, editing by Huw Jones and Susan Thomas

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