Saga sounds out customers over stock market float | Money | The …
Saga is pondering a stock market float. Photograph: Alamy
Saga has given its clearest indication yet that it intends to float part of the business on the Stock Exchange later this year by asking customers whether they’d be interested in buying shares.
The group, which specialises in providing financial services and travel to the over-50s, sent out an email this week to gauge interest. It follows a recent similar request to Saga Magazine’s one million subscribers.
The letter states: “At this stage it has not been decided what form this may eventually take, but one option is a flotation on the London Stock Exchange. If Saga were to float, it is our intention to make shares available to our customers. We would therefore like to know how many of our customers might be interested in buying Saga shares, if the opportunity arises.”
It adds that “registering your interest now in no way commits you to invest should a flotation go ahead”. A version also appears on its website.
Analysts are anticipating strong interest among Saga’s relatively well-off customers, who tend to be loyal to the brand. While financial advisers say Saga could be an interesting buy, it will depend entirely on the price at launch.
If a deal goes ahead, the private equity owned firm could be worth as much as £3bn. Around 6,000 other workers, who collectively own 13.2% in the firm, stand to benefit significantly.
It could also be the biggest popular share sell-off since the controversial sale of Royal Mail last year, in which about 730,000 people applied for shares, but many lost out. Their value has rocketed since the autumn, amid accusations that the government sold it off too cheaply.
This is the second time Saga has flirted with coming to market, having polled readers in 2004, before deciding against it.
Saga began as a guesthouse for retired holidaymakers in Folkestone, Kent. Today half of its sales come from financial services and insurance, about 30% from holidays, and 10% from healthcare. The rest is from publishing what is the UK’s biggest selling magazine. It is still the town’s biggest private employer.
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Saga sounds out customers over stock market float | Money | The …
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