INSURER Saga is weighing plans to offer a Royal Mail-style share offering for retail investors in an initial public offering set to take place next Easter.
Saga’s private equity owners Acromas, controlled by Charterhouse, CVC, Permira, moved a step closer to its long awaited market debut after inviting a handful of investment banks to pitch for the forthcoming float.
After being inundated with requests, several investment banks are in the running to land the slot, with Acromas executives – led by chief executive Andrew Goodsell – having met with at least 10 banks in recent days.
The insurer is understood to be mulling plans to offer shares to Saga customers, mirroring a similar offering in Royal Mail’s blockbuster £3.3bn float earlier this year.
The Saga float could be priced at a similar level of about £3bn. Banks are currently working on a timetable which would float the insurer at the start of the second quarter of 2014. “We don’t comment on market speculation,” a Saga spokesman said.