£2.5bn IPO target is missed

Saga has set the offer price for its initial public offering (IPO) at 185p, valuing the company at £2.1bn.

This is below the initial target of £2.5bn.

Executive chairman Andrew Goodsell said: “”We have been very pleased with the level of demand for Saga shares from both retail and institutional investors, with the offer subscribed several times over.

“We are delighted to have so many of our customers as shareholders and to have a high quality group of core institutions who we believe will be long-term supporters of the business.”

Acromas, Saga’s major shareholder, is selling 297.3 million shares, but will retain a 72% stake in the company.