TSB shares jump as Lloyds expands IPO after Carney comments

Lloyds Banking Group has increased the amount of shares it is to sell as part of the TSB initial public offering following stronger than expected demand.

The flotation, which commences today, will now see Lloyds sell a 38.5% stake in the bank, up from the 27.5% stake it had initially planned to float. The sale values TSB at £1.3bn, with shares priced at 260p. The stock subsequently jumped in early trading, with shares up 11% at 290p apiece shortly after the open. It is thought that appetite for the sale has been aided by comments from Bank of England Governor Mark Carney on interest rates. Carney said last week that interest rates could rise sooner than expected, a factor which would aid TSB, whose mortgage book is skewed towards va...