London’s stock market received a significant boost on Thursday as small business lender Shawbrook Group made its debut on the London Stock Exchange, marking the city’s largest listing in four years. The float valued the company at £1.9 billion, offering a rare sign of optimism for the UK’s struggling capital markets.
Shares in Shawbrook rose as much as 8.2 per cent on opening day, reaching 400.5p after being priced at 370p per share. The stock closed at 395p, giving the company a market capitalisation just above £2 billion. The offering was multiple times oversubscribed, reflecting strong investor demand from both domestic and international markets.
“There’s renewed optimism in the UK market,” said Tom Johnson of Barclays, one of the banks involved in the deal. “Investors remain engaged and we’ve seen plenty of interest internationally from the US and Europe. This momentum could help unlock a wave of listings in 2026. London remains the default choice for many domestic companies.”
The listing follows several years of weak activity in the UK’s IPO market, which recently fell out of the global top 20 for new listings. Shawbrook’s successful debut joins other recent London floats, including cosmetics firm Beauty Tech Group earlier this month. Food manufacturer Princes Group, known for its tinned tuna products, is also preparing for a £1.2 billion listing later this year.
Chief executive Marcelino Castrillo said the company was “proud to be listing in London, our home market.” The float marks a return to public ownership after an eight-year absence. Shawbrook was taken private in 2017 following a takeover by BC Partners and Pollen Street Capital for £868 million.
Its owners had initially planned to list Shawbrook earlier in 2025, but the move was delayed after new US tariffs under Donald Trump’s administration caused a spike in global market volatility.
Mr Castrillo said the lender was well positioned for growth after several years of investment under private ownership. “We have built scale across diverse, attractive markets and are well placed to keep growing as we support UK businesses and households,” he said. “As a listed company, we will continue to invest in our platform and people, deepen our presence in chosen markets, and expand selectively where we see attractive demand.”
Shawbrook raised £50 million through the sale of new shares, which it said will be used to strengthen its balance sheet and support further lending. The company’s loan book stood at £18.3 billion at the end of September, up from £17 billion in June. It aims to nearly double this figure to around £30 billion by 2030.
Since its acquisition in 2017, BC Partners and Pollen Street Capital have overseen a major transformation of Shawbrook from a niche lender into a diversified digital banking platform. The firm has invested over £260 million in technology during this period, while pursuing targeted acquisitions and expanding into new market segments.
The result has been a tripling in the company’s size, with its loan book, profit after tax, and tangible net asset value all increasing threefold since the buyout. Shawbrook has delivered an average annual growth rate of 15% in underlying profit after tax.
One key element of this growth strategy was the recent acquisition of ThinCats Group Limited, a specialist business lender focused on providing bespoke funding to established, growth-oriented SMEs. The deal strengthened Shawbrook’s position in the UK’s specialist SME lending market, an area the company sees as a key driver of future expansion.
Cédric Dubourdieu, Partner at BC Partners, said the listing reflected the success of the company’s transformation. “Yesterday’s successful listing is testament to the quality of the Shawbrook business and the exceptional management team who have led its growth,” he said. “Through investment in digitalisation and technology, Shawbrook has evolved into a strong, diversified banking platform. We are proud to support its return to the public market and look forward to its next phase of growth.”
Mr Castrillo added that the partnership with the firm’s private equity owners had been instrumental to Shawbrook’s progress. “Their support and challenge have helped us to shape and accelerate our strategy as we’ve built Shawbrook into a leading digital banking platform,” he said. “I’m grateful for their continued backing as we take Shawbrook into its next chapter as a listed business.”
Founded in 2011, Shawbrook provides finance across a broad range of markets, including commercial loans, mortgages for property investors, and motor finance. The lender combines data-driven underwriting and digital capabilities with a relationship-led approach, aiming to deliver flexible finance solutions to both businesses and individuals.
Its activities are funded primarily through a retail deposit base, including easy-access and fixed-rate accounts. The bank is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the PRA.
The Shawbrook listing is widely seen as a test of investor confidence in London’s capital markets, which have struggled to attract high-profile domestic listings in recent years. Analysts say the strong demand for the company’s shares could encourage other UK firms to follow suit in 2026, offering a potential revival for the City’s IPO pipeline.
