More than 7,000 members of the First Active group scrambled to the designated Ballsbridge office in Dublin yesterday to claim their free shares and in some cases to apply to buy more. The turbulence across international stock markets was far from the minds of the just-in-timers with the Dublin traffic doing more to raise their blood pressure as they strove to meet the 3 p.m. deadline.
From 7.30 a.m. when the doors opened, the stream of visitors to First Active's registrar's office at Hume House grew steadily. Couriers, taxis, motorists and pedestrians contributed to the gridlock by lunchtime, with two gardai trying to keep things moving. Just before 3 p.m. the independent adjudicator began the countdown as staff eagerly took the white envelopes from would-be investors. He was generous. At three bells the stragglers huffed and puffed as they raced to the finish line. Children, mothers with young babies and a man who had made a torturous journey from Kildare, missed the deadline by minutes.
"You're late," they were told firmly, but were assured they would still get their free shares. But whether they would qualify to buy extra shares would have to be decided by the adjudicator in due course.
"I thought it was 3.30," one man pleaded, while another insisted the deadline was 3.30 p.m. Another woman explained, between gasps, that she had only just received her forms from First Active that morning. "We'll do what we can," the adjudicator explained. "All applications will be given proper consideration."
Some 216,000 members are entitled to get free shares when the former building society floats on the Dublin and London stock markets next week. These members are also entitled to subscribe to buy additional First Active shares, up to a maximum of £5,000, for each qualifying account held.
By keeping the share allocation at such low levels, relative to other flotations such as Norwich Union, much of the frenzy was taken out of the scramble for shares. Depending on the demand for shares, many who applied to buy the full allocation may be disappointed and could end up with a fraction of the amount they sought.
Both AIB and Bank of Ireland reported very little demand from customers seeking to borrow funds to buy First Active shares although the £5,000 limit means many may be able to fund such a deal from their own savings.
Investment institutions can apply for up to £48 million new shares. The deadline for their subscriptions is next Friday. After that, First Active's board of directors will decide on the price at which to issue the shares. This will be announced on October 5th.
It has indicated the shares will be issued at between 265p and 380p, valuing a single allocation of 450 free shares at between £1,170 and £1,710.
First Active has issued a new range of residential mortgage products following a review of its fixed-rate packages.
The institution is offering a range of fixed-rate options for between one and 10 years to new borrowers. Where interest rates fall, it is undertaking to allow borrowers to switch to the lower variable rate without penalty. It is also offering flexible repayment options and mortgages for between 20 and 30 years.
The new mortgages are part of a new pricing structure.
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