Saga completes IPO at 185p per share

23rd May 2014 09:33

Over-50s tour operator and insurer Saga said it has completed its initial public offering at 185p per share, making it worth 2.1bn pounds when dealings begin.Saga, which announced last month that it was joining the growing ranks of companies floating on the stock market, said the offer comprises 297.3m shares, representing 27% of its issued share capital on admission, excluding an over-allotment option.Total gross proceeds raised by the company in the offer will be about £550m, it said.Saga, owned by private equity firms Charterhouse, CVC and Permira, has allocated half the shares to retail investors, including a "substantial majority" to Saga's customers, with the other half going to institutions.However, the 185p pricing was at the very bottom of the expected price range of 185p-245p per share, and it scaled back share allocations for customers after strong retail demand.Executive Chairman Andrew Goodsell said: "We have been very pleased with the level of demand for Saga shares from both retail and institutional investors, with the offer subscribed several times over."PW