National Australia Bank (NAB) on Monday announced a proposed, wide price range of between £1.75 and £2.35 per share for the initial public offering (IPO) of its Clydesdale and Yorkshire Bank (CYBG).

NAB said the price range equates to a market capitalization for CYBG of £1.54 billion to £2.07 billion.

Analysts said volatile global markets mean the proposed IPO price is less than originally planned.

NAB is proposing a demerger of 75% of CYBG to existing NAB shareholders and a divestment of 25% of shares to institutional investors via the IPO.

CYBG will start a global marketing roadshow for the IPO on Monday.

NAB said it “may elect not to proceed with the IPO or to only proceed with a partial IPO, in which case NAB will retain a shareholding in CYBG.”

It said “the demerger is not conditional on the IPO proceeding, but the IPO is conditional on the demerger proceeding.”

The Australian bank said that “subject to NAB finally determining to proceed with the IPO (in whole or part), the final IPO price will be determined by the IPO book-build process and is expected to be announced on 2 February 2016.”

NAB proposes that CYBG shares be listed on the London Stock Exchange’s main market and start trading on February 2 “on a conditional basis.”

A meeting to approve the demerger will be held on January 27 at the Melbourne Convention and Exhibition Centre.