9th May 2014
Saga, the over 50s insurance, travel and publishing group has launched its share offer with existing customers up for a preferential deal.
The firm is offering its customers one extra share on offer for every 20 bought and held for a year.
The company has set the offer price range at between 185p to 245p per share, valuing the firm at between £2bn and £2.5bn. The unusally wide price range is because the stock is being offered to small as well as institutional investors. The firm is hoping to use £550m of the money raised to pay down debt.
The minimum amount retail investors can apply for is £1000 worth of shares though the threshold for employees is lower at £500 to £750.
The customer offer is available at www.saga.co.uk. Customers will receive preference in allocation over other retail investors excluding eligible employees says the firm.
Saga customers who have registered an interest in the share offer should receive either an email containing further details on how to apply or if requested an application pack, an application form and summary prospectus in the post by Tuesday 13 May.
Commenting on the offer, Gavin Oldham, executive chairman of The Share Centre, says: “We welcome the floatation of Saga, a well-known company which has done so much to benefit the over 50s. Its growth from a small hotel in Folkestone has been remarkable and after several years of private equity ownership we are pleased to see it is coming to the listed market. As the proportion of the population over 50 is expected to increase significantly over the coming years, there should be plenty of opportunity for growth in all areas of its business.”