NAB delays Clydesdale float by 24 hours

David Duffy
David Duffy
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National Australia Bank Ltd has delayed the float of Clydesdale and Yorkshire Bank by 24 hours to update its listing prospectus after a request for more information from a rating agency.

Clydesdale, whose shares were priced at 180 pence on Monday, had received a request from an unnamed rating agency that could result in a downgrade of the bank’s deposit rating, NAB said. The rating could also be placed on credit watch.

Investors will have another day to consider a revised IPO prospectus.

The nearly 180-year-old British lender is expected to have a senior standalone investment grade credit rating, NAB said. Clydesdale shares were priced towards the lower end a wide 175-235 pence indicative range, bookrunners had told Reuters. Some analysts had considered the initial range “aspirational”, given recent declines in share markets.

NAB said that the float was multiple times covered at 180 pence, but that it would announce a final pricing on Wednesday.

The Australian lender, which bought Clydesdale in 1987, is expected to sell 25 percent of the unit in the IPO and float the rest to its shareholders.

David Duffy, Chief Executive Officer, said: “I am delighted that NAB has today confirmed the demerger and that the IPO is expected to proceed. Whilst we have a very short delay in launching the IPO it is very important that we commence trading as an independent company in the best possible way. We have made excellent progress with the transaction and we have very strong interest in our story.”