Shares to be priced at the bottom of 185p to 245p range, report says

Over-50s insurance broker Saga will fail to hit its target £2.5bn valuation when it floats tomorrow, the Financial Times reports.

The paper said bankers handling the transaction were expecting to price the company’s initial public offering (IPO) at between 185p and 205p, which is at the bottom of Saga’s expected range of 185p to 245p.

That would value Saga at between £2bn and £2.2bn.

The company still plans to raise net proceeds of £550m from the IPO, the FT added.

Saga will use the net proceeds to reduce its net debt to £700m.