Flotation to value Mutual at pounds 4bn

OLD MUTUAL, the South African financial services group, will sell 1,171 million shares or about 36 per cent of the enlarged company when it floats and lists on the London stock market on 12 July.

The issue price of the shares is expected to be around 127p, valuing the offer at pounds 1.5bn and the entire group at pounds 4.1bn. The offer includes 297 million new shares issued to raise additional capital, and 874 million shares being sold on behalf of South African institutions and individual policyholders, who received an average of 300 free shares in return for approving the decision to demutualise the company.

Around 2 million out of the 3.2 million policy-holders have decided to retain their shares, a spokesman said yesterday. Investors in South Africa and Namibia have applied for around 20 million shares in the local offer, and UK investors can apply for a minimum of pounds 3,000 worth of shares, either through their own financial advisers or by telephoning NatWest stockbrokers on 0800-210217 before 5pm on Sunday.

Most of the group's business is in southern Africa, but it owns the UK-based broking and asset management business of Capel Cure Sharp, with a portfolio of 15 unit trusts and pounds 9bn under management.

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