TSB float?

RobStaffs

Waiting on the details of before I consider it. The free share for every 20 shares is one good aspect. I am also looking to buy as part of my 2015 ISA allowance but waiting to see if this can be allowed under the terms of the offer. The recent flotation of SAGA was very underwhelming in my opinion so it seems the market has gone pretty flat for these big flotations. Also you wonder about the future of banks and how they can survive.There are only so many banks on the high st. Years ago you had mergers and re-branding of banks but no real closures. These days there does not seem to be appetite for new entrants or takeovers etc.

bowlhead99

fzx5v0 wrote: »

I have been thinking about a stocks and shares ISA and TSB share options. If i opened an ISA with say Iweb would I be able to purchase the TSB options through the ISA?

thanks

Nope. You can't hold options in an ISA. Or for that matter, warrants, futures, nil paid shares, spread bets, shares not on a recognised exchange etc.

So you could hold real TSB shares or TSB bonds or preference shares or convertibles or whatever other real instruments they issue. Or you could buy a fund or investment trust that had a high allocation to TSB. But you can't write an option contract and have it put in an ISA.

fzx5v0

thanks
so once I buy the shares I can then transfer them in to the isa

Thrugelmir

Scarpacci wrote: »

I can see a place for TSB in my portfolio. I don't currently have a UK-focused bank, having HSBC and Standard Chartered, and I've been on the look out for one as a smaller investment.

Paragon and Secure Trust are well worth following. Though Secure Trust are on a fairly high rating currently.

Barclays offers reasonable value given it's plans to refocus the business away from investment banking. Better than Lloyds currently as it does pay a dividend. Also a sizable slug of shares to be off loaded onto the market.

Thrugelmir

RobStaffs wrote: »

The recent flotation of SAGA was very underwhelming in my opinion so it seems the market has gone pretty flat for these big flotations.

That's because these are Companies that are being relisted by private equity firms and come with balance sheets full of debt i.e. bank borrowings. If you wish to invest in cash generative companies with far lower geared balance sheets. Then it's worth digging around in AIM stocks that are UK based companies. Though do your research before investing.

vectistim

Looks like this is getting close now.

Is it known whether there will be a system to apply for shares directly, or do we have to do it via a stockbroker, if so, which ones will be able to simply supply direct ownership and share certificate without having to faff about signing up for a share account (and related custody fees etc).

bowlhead99

vectistim wrote: »

Is it known whether there will be a system to apply for shares directly, or do we have to do it via a stockbroker, if so, which ones will be able to simply supply direct ownership and share certificate without having to faff about signing up for a share account (and related custody fees etc).

Lloyds/ TSB don't want to faff about signing up lots of people for direct ownership so you have to do it via an intermediary/ broker.

http://tsbshareoffer.equiniti.com/intermediaries.aspx

If you don't have one and don't want an ongoing service from them you can pick a cheap one, but you won't be able to avoid whatever process they have for being a new customer.

One of the cheapest eXecution Only brokers is x-o.co.uk. They have no fee for an ongoing non-tax-wrapper account so you could use their nominee service and not have to faff about receiving a paper certificate and keeping it safe and then opening another broker account with someone to sell the shares at some point in the future. If you want to turn your x-o nominee holding into a paper one in your own name it's only £15 and then you can walk away as a direct registered owner.
http://www.x-o.co.uk/our_charges.htm

They don't have any ongoing ISA fees at the moment so no reason you couldn't stick your TSB shares in one with them. However, they do have an exit fee if you open an ISA account and then close it later. So if you don't think you'll need to make use of the ISA benefits to the tune of the £50 exit fee, you could stick to a normal unwrapped account.

MABLE

After great thought I have decided to invest. However will only go for the min amount.

Northern_Light01

MABLE wrote: »

After great thought I have decided to invest. However will only go for the min amount.

I've done exactly the same.


In the wake of some really disappointing IPOs in recent times (I didn't let "temptation" get the better of me!) the TSB offer does offer the small investor a chance of a noticeable gain, even it it is not expected to be spectacular. So while it isn't exactly the next Royal Mail, it has to be seen as the next best thing.


The free share offer is a bit lost on me though. Having to wait a year for somewhere in the region of 350-400p (not even 1% of my initial outlay) seems a little bit of an insult. If they offered a couple every year till they pay a dividend then it might have proved more popular with small investors. But it's better than nowt, I suppose.

Scarpacci

Personally I have decided against partaking in the TSB IPO. I'm really a dividend investor, so no dividend for three years is a red flag to me. A share would have to be very attractive to ignore one of my main goals, as it were, and I just don't think TSB is. I have been on the look out for a UK-focused bank but I'm just not sold on this.

The clean slate is appealing and the bank could well grow its current accounts and (eventually) mortgage intermediary business, but right now it's got an unappealing mortgage portfolio (high on interest only mortgages) and it's not very profitable. As a small UK bank it has potential, but the market place is fairly hostile for new/smaller banks. There's a lot of hope attached to them being able to make the most of their relatively expensive branch network, but most of the country seem extremely averse to switching their bank accounts.

There's no denying there's incentive for Lloyds to see the IPO go well, as they unload the rest of TSB, and TSB does have advantages new entrants usually wouldn't with Lloyds infrastructure. Still, pricing at below book value might be necessary just for the negatives I've mentioned, not representing a "bargain" as it were.

For what it's worth, Barclays trades below book right now as it tries to transform itself into a more focused, somewhat more mundane/retail bank. I don't know whether I'd be investing in BARC either, but I think I would place them above TSB.