Lloyds Bank has increased the number of shares it is selling in TSB as a result of strong demand from investors.
The bank, a quarter of which is owned by the taxpayer, had initially decided to sell a 25% stake in TSB but has now upped the proportion to 35%.
The shares have been priced at 260p each, giving TSB a market value of £1.3bn.
More top news
Life may have evolved on at least three planets in a newly discovered solar system just 39 light years from Earth, scientists believe.
President is 'planing to overturn' guidance ordering schools to allow trans students to use the toilets matching their gender identity.
Republican politicians have faced a barrage of questions about the Trump administration's agenda during hostile town hall meetings.