Author Topic: Should I buy TSB shares in the TSB IPO? For & Against  (Read 673 times)

McvittieJ

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Should I buy TSB shares in the TSB IPO? For & Against
« on: May 27, 2014, 01:11:31 PM »
So TSB IPO looks likes its a go'er. I'm wondering whether I should buy TSB shares in the TSB IPO, and I'm sure many of you are thinking the same. There's no prospectus out yet, but here's why I am considering and not considering buy shares in it:

Good
+ They are offering free shares if you keep hold of them for a year. So long as price doesn't fall below 5%, then still technically making a gain for the year!
+ It'll still be owned by Lloyds, one of the best performing banks on the stock market since recession.
+ At the moment, doesn't look like it'll have many skeletons, like PPI because it has an indemnity from Llloyds.
+ It's a challenger bank, so aiming for solid growth.

Bad
- It's still going to be classed as a bank, this is still quite volatile sector!
- These are the branches that Lloyds failed to sell to the Co-op, are they geared up to please the markets?
- The IPO market is pretty dire at the moment. Highly unlikely there will be any quick gains with this one.

Overall, think it's worth a punt because of the free shares on offer after a year. Although that could change once prospectus has been issued.

What do you guys think?

Retaker

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Re: Should I buy TSB shares in the TSB IPO? For & Against
« Reply #1 on: May 27, 2014, 01:16:36 PM »
All good points. As a 'challenger' bank, it's going to have put down a good challenge to the mainstream and I guess this means being more risky in its lending to differentiate itself. At the moment, I too am leaning towards investing, but am going to await the prospectus / press commentary about demand before making a decision.

I never invest in an IPO until the deadline day.

AnniePap

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Re: Should I buy TSB shares in the TSB IPO? For & Against
« Reply #2 on: May 27, 2014, 01:18:10 PM »
I wouldn't invest in this. Why not go for its parent company Lloyds instead? They are due to pay a dividend soon too and lots of information is available about them. IPO market seems like everyone is trying to make a quick buck now.