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LONDON May 21 UK holidays-to-insurance company
Saga has narrowed the price of its London stock
market listing towards the bottom of its original range, despite
Saga, which focuses its services on the over-50s, said that
its initial public offering (IPO) would be priced at 185-205
pence ($3.12-$3.45) a share, from 185-245 pence previously.
A source familiar with the matter said the company's
cautious approach came from its keenness to avoid the share
price slide which has plagued companies such as Poundland
and Just Eat since their listings this year.
The new guidance gives the company an equity value of
2.03-2.19 billion pounds, said a separate source familiar with
the deal, lower than the original price range which valued the
company at up to 2.5 billion pounds.
A low price range can indicate a lack of demand from
investors. However Saga, which has offered a retail allocation
to its loyal base of 2.1 million customers, said it had
experienced "exceptional" demand for its retail offering.
"Given our desire to allow customers to play a significant
part in the future ownership of the business, we remain very
focused on seeking to underpin a positive after-market
performance in the stock," said Executive Chairman Andrew
The second source said: "They are very sensitive on how this
On Tuesday, sources told Reuters that the books were covered
for Saga's sale of 550 million pounds of new shares by both
institutional and retail investors, although the allocation to
each has yet to be decided.
There have been indications that interest in European
company flotations may be cooling somewhat after a red-hot start
to the year, as investors grow more selective. Card Factory
shares fell almost 10 percent in their first day of
trading after their launch on the London Stock Exchange last
($1 = 0.5935 British Pounds)
(Reporting by Freya Berry; Editing by Clare Hutchison and