TSB targets £2bn float for next year

According to reports, TSB is to float in the first half of 2014 with a valuation between £1.5 billion and £2 billion, with Lloyds Banking Group set to sell down a stake of between 30% and 50%.

The Daily Telegraph reported that an institutional roadshow is expected to begin in January as Lloyds’ plans to spin off the 632 branches gather pace.

Lloyds will initially sell down a stake of between 30% and 50% at the time of the float, reducing its stake further over time.

Some shares will be offered to retail investors through a small number of stock brokers, the paper said.