TSB will offer less than a quarter of its available shares to ordinary members of the public, its boss has said.
ITV News Business Editor Joel Hills reports:
TSB is to list next month. 25% stake in the bank will be sold. Boss says 15 - 20% of shares will go to small (retail) investors.
Paul Pester says TSB will not pay a dividend until 2017 at earliest as all profits will be channelled into growing bank.
Shares in TSB will be available to members of the public via intermediaries, as well as institutional investors.
Lloyds Banking Group said the retail offering will contain an incentive allowing each retail investor to receive one free share for every 20 shares acquired up to the value of £2,000 and kept for a year after the float.
A 25% stake in TSB is to be floated on the stock market next month, owner Lloyds Banking Group has announced.
Customers of banks including Lloyds, TSB and Halifax were left unable to withdraw cash, after two Lloyds Banking Group servers went down.Read the full story ›
A spokesperson for Lloyds Banking Group has said the IT problems encountered earlier are now resolved.
We apologise that earlier today, between 3pm and 6pm, some customers were unable to complete their debit card transactions. Although the majority of transactions were unaffected, we are very sorry for the inconvenience that this will have caused.
At the same time, some customers encountered problems at approximately half of our 7,000 ATMs. This was resolved by 7.30pm, and all of our ATMs are now working.
Online and telephone banking were unaffected by the problems.
The CEO of TSB has tweeted that the cause of the banking problems are now fixed but added that it will take a while to clear the backlog.
The cause of the problems at TSB is now fixed. It'll take a while to sort the backlog. Sorry customers may have problems for an hour or so
Thanks to all TSB colleagues who worked so hard this afternoon to fix the IT issues. Sorry once again to all our customers affected. PDP
A Lloyds Banking Group spokesperson has told ITV News that two out of seven of the banking group's servers have gone down, which has led to customers being unable to withdraw cash or use their debit cards.
Ursula Lyons found the card problem "annoying and embarrassing", after experiencing issues at a cash point and accessing her online banking account.
But Tracy Pomphrey said: "Myself and my mum had our TSB cards declined in Asda, it was extremely embarrassing. Although we could go out to the cash machine outside and withdraw the cash!"
Hayley Jane said: "People saying they are glad they're with other banks, but they have all had this problem at some stage - Natwest had this problem last year for ages!!"
TSB CEO Paul Pester has tweeted his apologies to customers experiencing problems withdrawing money and paying with debit cards:
Apologies again to TSB customers having problems with their cards this afternoon. We're working hard to get to the bottom of the problem PDP
Lloyds Banking Group say it is "working hard" to resolve the issues customers are experiencing with ATMs and debit cards.
We are aware that some customers are unable to use their debit cards either to make purchases or to withdraw money from ATMs. We are working hard to resolve this as swiftly as possible and apologise for any inconvenience caused.