NAB prices Clydesdale lower than expected for IPO
National Australia Bank (NAB) has said that it expects to float its Clydesdale Bank unit at a price that would mean it has a market capitalisation of between £1.54bn and £2.07bn. This is said to mark a comedown on previous expectations, after recent volatility in global markets. NAB is planning to sell 75% of the Yorkshire-based bank to shareholders, and to sell the remaining 25% to institutional investors. NAB's finance chief, Craig Drummond, admitted that the pricing is lower than expected, but said that "it's a little lower for the obvious reason that markets are volatile and a bit soft".

National Australia Bank finance chief Craig Drummond says the bank has had to temper its expectations about the float price of its British lender Clydesdale Bank due to the volatility rocking global sharemarkets.

After a tumultuous start to the year for sharemarkets, NAB on Monday said it expected to float Clydesdale in early February at between £1.75 and £2.35 a share.

The pricing range would mean that Clydesdale has a market capitalisation of between £1.54 billion and £2.07 billion. Credit: Erin Jonasson

The pricing range would give Clydesdale a market capitalisation of between £1.54 billion and £2.07 billion ($4.3 billion) and it comes after extensive talks with investors.

NAB plans to spin off 75 per cent of the Clydesdale, a retail and business bank, to its shareholders, and sell the remaining 25 per cent to institutional investors in an initial public offering, which would see Clydesdale listed on the London Stock Exchange.