Which bank is going to the public??

londonTiger

Having kicked myself for not buying the RM shares I want to buy shares in future privatisation deals.

I vaugely rmember hearing on the radio that some bank is being forced to sell part of its operations as it's too big and the company will be sold to the public with a maximum cap to each person.

Share prices on sale are ususally undervalued and the price baloons post sale (apart from facebook). So just curious does anyone know which bank it is and whether the chance to buy is still open?

Browntoa

I thought it was lloyds shares and possibly the bad part of Northern Rock

londonTiger

damn looks like i missed it: http://www.iii.co.uk/ipo/tsb-banking-group-plc-share-offer

How did it go? Did i miss out?

edit: It can't be this because I heard it on the radio a few months ago, this TSB share offer went through in 2014.

steelbru

The govt have announced that they are going to sell off some of their Lloyds shares to the public, but details of price and date has not been released yet.

Although they have said they will sell at a discount to current market price, this is not a "new privitisation", as over 80% of Lloyds shares are already owned by individuals, pension funds, etc, so you are unlikely to make a killing on this.

le_loup

londonTiger wrote: »

I vaugely rmember hearing on the radio that some bank is being forced to sell part of its operations as it's too big and the company will be sold to the public with a maximum cap to each person.

Share prices on sale are ususally undervalued and the price baloons post sale (apart from facebook). So just curious does anyone know which bank it is and whether the chance to buy is still open?

You seem to be very knowlegable about this subject. Got any othe tips for us?

HouseBuyer77

Share prices on sale are ususally undervalued and the price baloons post sale (apart from facebook).

And apart from countless other companies...

Just because something is going for an IPO or other similar sell off doesn't mean the share price is about to rocket. Sure RMG jumped to above 600, but then it went below 500 where it's spent quite a long time.

See TSB shares here: https://www.google.co.uk/finance?cid=913696758426478

It held above the IPO price but not significantly and dropped below IPO around Oct 2014. The large jump is due to a buy-out by another bank.

Many companies will see a bounce on IPO but it can be very sharp before heading down again, it's easy to miss. As a amatuer investor buying IPOs purely on this basis is little better than gambling.

There's no such thing as easy money in the stock market!

londonTiger

There are three factories in RMG IPO.

1) limited quantities were sold per person
2) sold to individuals in the UK and not companies.
3) government was selling them and government does not want to oversell and have the share price drop to lower than the IPO price immediately after sale.

I beleive the reason why RMG jumped was because of these criteria, corporate investors were eager to buy in, but weren't allowed to and thus there was a buying frenzy as professional investors were buying shares off the initial private investors..

This isn't a "typical" IPO scenario where investors can offer to buy as many as they want and investment is open to foreign buyers, corporations etc.

jimjames

So how do those factors work for selling these bank shares that are a hot tip?

kidmugsy

RBS is going to float off some branches as Williams and Glyn.

http://rbsbranchinformation.co.uk