London • State-backed Lloyds Banking Group PLC has increased the number of shares it is selling in its TSB unit amid strong investor demand.
The bank, which was bailed out during the 2008 financial crisis, is now selling more than 35 percent of the unit, rather than the 25 percent initially planned. The opening price valued the company at $2.2 billion.
Lloyds also instructed the underwriters to deploy an over-allotment option to accommodate demand, so when the entire sale is completed it will constitute a 38.5 percent stake of the bank.
Group CEO Antonio Horta-Osorio said the demand reflects confidence among investors and that it will be an effective competitor in Britain.