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:
+ 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.
- 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?