Woolwich windfall up to pounds 1,600
Thursday 29 May 1997
Analysts said yesterday the recent rise in the value of bank shares meant the average allocation of 658 shares per member would be worth more than pounds 1,600 at a probable flotation price of 250p. The minimum allocation of 450 shares would be worth pounds 1,125 at that price.
In January, Woolwich said it expected a range of 175p to 200p, putting a price tag of just over pounds 3bn on the society. The latest calculations mean Woolwich will be worth more than pounds 4bn when it joins the stock market.
Issuing its listing particulars, Woolwich said it expected to make pre- tax profits of pounds 210m in the six months to June, before a pounds 26m charge to cover the cost of its stock market flotation. Admitting to being overcapitalised, the society also hinted at a share buyback, promising to "consider ways to return capital to shareholders".
As with the Alliance & Leicester and Halifax flotations, members who do not want to hold on to their shares will be able to sell them through a series of four auctions to institutions. Unlike the other floats, however, the auctions will not take place until after first dealings on 7 July in order to maximise the price raised for members.
Commenting on its short-term trading outlook, Woolwich was upbeat about prospects for future growth in its lending, investing and insurance businesses. It was also optimistic about the outlook for the UK housing market, predicting house prices would grow by 6 per cent in 1997.
The latest information from Woolwich coincided with yet another increase in the price at which Halifax shares are expected to close on the first day of dealings next Monday. Clients of the spread betting specialist, IG Index, were yesterday placing bets that implied a price for the shares of between 740p and 750p.
Halifax's original estimate was that its shares would start trading at between 395p and 450p. At the latest forecast, members stand to pocket an average windfall of almost pounds 2,500.
- 1 Paris attacks: Do not call Charlie Hebdo killers 'terrorists', BBC says
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
- 4 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 5 The enemy within: People who hear voices in their heads are being encouraged to talk back
Paris attacks: Do not call Charlie Hebdo killers 'terrorists', BBC says
Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Howard 'Mr Nice' Marks reveals he has inoperable cancer: 'I've had an incredible life'
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
British Muslim school children suffering a backlash of abuse following Paris attacks
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...