* IPO priced at 170 pence a share
* Values business at 413 million pounds
* Price range was 170-225 pence a share
(Adds further details)
By Freya Berry and Matt Scuffham
LONDON, June 4 Britain's OneSavings Bank
is set to price its London stock market listing at 170
pence a share, at the bottom of the price range, valuing the
business at 413 million pounds ($691.3 million), two sources
familiar with the matter said.
OneSavings, which is owned by US private equity fund JC
Flowers, had targeted a price range of 170-225 pence a share,
and a valuation of 413-530 million pounds, the sources told
Reuters on Wednesday.
The bank, which is looking to bolster its capital and obtain
funding for future growth, is one of several new British banks
eying stock market listings. However, investor interest in UK
company flotations has cooled in recent weeks following a flurry
of activity earlier in the year.
Lloyds Banking Group said last month that it
planned to sell just a quarter of its shares in TSB in the first
tranche of an initial public offering, having originally planned
to sell up to 50 percent.
Outside the banking sector, clothing chain Fat Face pulled a
planned 110 million pound offer while holidays-to-insurance firm
Saga priced its shares at the bottom end of market expectations.
OneSavings was created in 2010 when the struggling Kent
Reliance building society was rescued through a 50 million pound
capital injection by JC Flowers. The bank made a pretax profit
of 31.4 million pounds last year, up from 8.1 million in 2012,
and increased lending by 38 percent to 3 billion pounds. It is
targeting a dividend payout of at least 25 percent of earnings.
($1 = 0.5974 British Pounds)
(Reporting By Freya Berry; Editing by Erica Billingham)