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Deadline looming for investors hoping to join Saga story

Published: 00:41 20 May 2014 AEST

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If anyone's hoping to get in on the next big London float, they had best be quick. 

Applications for shares in Saga, the specialist insurance and holiday firm for the more mature market, will only be available until midnight tomorrow (May 20).

As much flagged, there has already been much interest in the UK firm's market debut, which has been priced valuing the firm with a market cap of between £2bn and £2.5bn.

Traders will be hoping shares perform as well as Royal Mail's (LON:RMG) did last October, when the postal group came to London valued at £3.3bn and shares shot to an early premium and have not looked back since.

Interest surrounding IG Index's grey market on the company last week suggested Saga would launch with a valuation of between £2.75bn and £2.95bn, such is the interest in the group and global hunger for IPOs generally.

Speaking to Proactive Investors, market analyst at IG, Chris Beauchamp said the current spread on the grey market now had the valuation of between £2.4 and £2.6bn.

"We've continued to see it drop back a bit from the highs we had when we first launched it - over £3bn," he said, adding that suggested the shares would receive a more muted reception on the first day of trading. However, he said there were still signs of plenty of interest.  

As well as insurance and holidays, Saga has also moved into health care and serves a demographic, which is rapidly growing in the UK.

More than 700,000 of its customers of have expressed an interest in buying the shares and existing Saga customers and employees will be offered the perk of one free share for every 20 bought. The minimum application being for £1,000.

Many brokers are offering shares although it is possible to get hold of the shares direct from Saga as well.

All applications must be received by 11.59 pm on May 20 though some have earlier deadlines, such as Hargreaves Lansdown and Killik, which is 5pm on May 20, so it is best to check first.

Key dates in the Saga float:

Latest date for receipt of indications of interest in the Institutional Offer - May 22

Start of conditional dealings on the LSE - 8am May 23.

Start of unconditional dealings 8am - May 29.


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