Saga cuts float value despite ‘exceptional demand’
In excess of-50s group Saga decreases maximum cost at which it will sell its shares from 245p to 205p 
Photo: PHOTOLIBRARY
Saga, the more than-50s group, has cut the cost assortment for its shares in the forthcoming flotation to among 185p and 205p.
Previously it had indicated a range of 185p-245p, so the alter marks a 16pc reduction in the highest price. The minimize comes despite what the firm referred to as “excellent demand” from private traders, many of whom are Saga customers.
Institutional investors have been much less enthusiatic, even so, indicating that they would not be interested in the shares if priced at the best of the unique range.
The firm stated the cost minimize was intended to enhance the odds that investors who get component in the float would see gains when trading commences on Friday. “We continue to be very focused on searching for to underpin a good aftermarket performance in the stock,” the chairman, Andrew Goodsell, explained.
The cost reduce bears out the predictions of City fund managers reported here yesterday . The deadline for participating in the float expired at midnight final evening.
Mr Goodsell said: “The retail supply has now closed, showing exceptional demand, and we carry on to see robust momentum in the institutional provide.
“Provided our want to allow buyers to play a considerable element in the long term ownership of the company, we stay very focused on seeking to underpin a positive aftermarket performance in the stock, with the appropriate stability between substantial good quality institutional traders and retail traders.
“We are as a result narrowing the selection to 185-205p per share to help a sturdy debut.”
The newest prediction of the price at which traders can sell their shares when trading commences is 223p, according to IG, which runs a “grey industry” for its consumers. If Saga sells the shares at the optimum 205p price, this would give investors an quick revenue of about 9pc.
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