NAB could raise $1.08b from Clydesdale

NAB could raise as much as $A1.08 billion from the partial IPO of its UK business, which it has valued at $4.29 billion.

National Australia Bank could raise as much as $A1.08 billion when it offloads Clydesdale Bank next month.

NAB will demerge 75 per cent of the UK business to its shareholders and divest the remainder via a February 2 float on the London Stock Exchange for STG1.75 to STG2.35 ($3.65 to $4.90) per share.

That price range values the unit at up to $4.29 billion and means the Australian bank could raise as much as $A1.08 billion from the IPO, which is conditional on the demerger proceeding

NAB said last week that Clydesdale's performance in the three months to December 31 has met the group's expectations, but it has long been a drag on the Australian lender.