(Reuters) - Clydesdale Bank Plc [IPO-CLBP.L] said it planned to go ahead with its listing on the London Stock Exchange and the Australian Securities Exchange as part of its demerger from National Australia Bank Ltd (AX:NAB).
NAB said in May that it would sell between 20 and 30 percent of its British business, which includes Clydesdale, allowing it to shore up its balance sheet after regulators imposed under new, stricter rules on banks.
Clydesdale is not expected to lay off employees or close branches to boost its profit as it pursues a return on tangible equity target of at least 10 percent by 2020, Chief Executive David Duffy told Reuters on Monday.
That strategy is in contrast to larger banks such as Standard Chartered Plc (L:STAN) that have been shedding assets and cutting jobs as they close risky or unprofitable operations.
Clydesdale's listing, expected in February, follows a restructuring of the bank that started in 2012.
After it lists, Clydesdale is expected to join the ranks of "challenger" banks in London, which are taking on established companies such as Lloyds Banking Group (L:LLOY).
Clydesdale said Morgan Stanley (N:MS), Bank of America (N:BAC) Merrill Lynch, Macquarie Capital and J.P. Morgan Cazenove are acting as joint bookrunners for the offering.