Saga announces expected price range of LSE flotation

Harriet Bailey
09 May 2014

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Private equity-backed Saga has released an expected price range and offer launch ahead of its upcoming listing on the London Stock Exchange.

Saga plans to float on the main market for listed securities of the LSE with an expected offer price range of between 185-245 pence per share.

The market capitalisation is therefore expected to amount to £2-2.5bn on admission – lower than the £3bn reported last week.

The total size of the offer is expected to deliver a free float of 25-50% of the issued share capital. Shares in Saga will total 1.07 billion following the offer. The minimum number of shares involved in the IPO will be 258 million, up to a maximum of 555 million.

Acromas – the holding company owned by Charterhouse, CVC, Permira and employees of the group – will make shares representing up to 15% of the offer available in an overallotment option.

The net proceeds from the offering have been earmarked to pay down Saga's debt to approximately £700m immediately following admission to the market

Applications for shares can be made until 20 May before an announcement of the final offer price and size, publication of the pricing statement and notification of the allocations of shares on 23 May. Conditional dealings will commence on the LSE on the same day before unconditional deals are admitted on 29 May.

Citigroup Global Markets is acting as sole sponsor, joint global coordinator and joint bookrunner for the offering alongside joint global coordinators and joint bookrunners Bank of America Merrill Lynch, Credit Suisse Securities and Goldman Sachs.

JP Morgan Cazenove and UBS are also acting as joint bookrunners, while Investec has been appointed joint lead manager alongside Mizuho. STJ Advisors was hired as financial adviser back in October, when news of the potential IPO first emerged.