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Australia's NAB delays Clydesdale IPO after ratings question

Published 02/02/2016, 08:14
© Reuters. A National Australia Bank (NAB) sign is displayed outside an office building in central Sydney, Australia
NAB
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LONDON (Reuters) - National Australia Bank Ltd (AX:NAB) has delayed the float of Clydesdale Bank Plc 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 on Tuesday that the float was multiple times covered at 180 pence, but that it would announce a final pricing on Wednesday.

© Reuters. A National Australia Bank (NAB) sign is displayed outside an office building in central Sydney, Australia

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.

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