NATIONAL Australia Bank has raised a total of £396 million from the flotation of Clydesdale and Yorkshire banks as CYBG. The bank sold 25 per cent of the shares in Glasgow-based CYBG to institutions, in an exercise that valued the lender at £1.6 billion. The remainder were allotted to shareholders in the Australian group. CYBG said the manager of the share sale, Morgan Stanley, had exercised an over-allotment option granted by National Australia Bank in respect of 28,673,323 ordinary shares at the offer price of 180 pence per ordinary share, worth £52m in total. This indicated it had not been required to buy any shares in CYBG to stabilise the price after the company floated on the stock market on 3 February. Shares in CYBG closed down 2p, at 183p, on the London Stock Exchange yesterday. Following Morgan Stanley exercising the option, National Australia Bank has no shares in CYBG.

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