Saga customers sign up ahead of £2.2 billion float
Wednesday 30 April 2014
Saga has revealed that 700,000 customers have registered to take part in its stock market listing as it aims to raise around £550 million.
The over-fifties group is expected to float with a valuation of about £2.2 billion. It will join the London Stock Exchange as a “specialised consumer business” despite calls from some City investors that it should be categorised as an insurer.
So far, the number of customers registering interest in buying Saga shares is the same as the amount of applications Royal Mail received from the general public before its flotation. The company said retail investors would have to apply for at least £1000 of shares to be eligible for the share offer.
Andrew Goodsell, executive chairman, said: “What began 60 years ago in a small hotel in Folkestone is today one of Britain’s most trusted and respected companies. Our customers are at the heart of our brand and I am delighted they will have an opportunity to be shareholders in the company.”
Saga is owned by private equity firms Permira, Charterhouse and CVC, who paid £6.3 billion to buy both the group and the AA in 2007 and subsequently merged the two under Acromas, a newly formed parent holding company. It has 2.1 million customers and a database on 10.4 million people or 8.4 million households around the country.
Goodsell defended FTSE’s decision to classify the group as consumer business rather than an insurer, pointing to the fact that about 60% of its revenues came from travel and healthcare services and 40% from financial services.
However, critics said a more detailed breakdown — expected in its prospectus — will show insurance is the single largest revenue contributor. The group’s valuation might have been lower as an insurer because the sector is under pressure.
- 1 Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 Dad attempts revenge on teenage daughter, plan backfires spectacularly
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Isis 'throw man off a building for homosexual affair' and beat him to death when he survives
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...