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
Three women and three girls were reportedly shot dead because they were trailing 100 metres behind IS fighters.
Building a third runway at Heathrow was the most controversial of the three expansion options, so why is it going ahead?
The body of toddler Norma Dale was found dumped on wasteland near her home in 1946 with one of her red shoes missing.