What will tomorrow's prospectus tell us?

It will set a price range at which the Telecom Eireann shares will be sold. The exact price will not be set until very close to the time the shares float on the market in July. The public will be invited to apply for shares from next Monday and they will have about a fortnight to do so. Investors will apply for cash amounts - rather than a specific number of shares. The minimum amount which can be applied for will be £250 and the maximum will be £100,000.

Will I get all the shares I apply for?

Probably not. Demand for the shares from the public and institutional investors is likely to greatly out-strip supply, unless international stock markets are affected by a period of serious nervousness over the next few weeks. Those who apply for very small amounts of shares are likely to get all, or most, they are seeking.

But those who apply for larger amounts will see their allocations scaled back, probably quite substantially for those applying for £50,000 or more. The exact amount allocated to each investor will not be known until close to the time of flotation. The 1.2 million people who have pre-registered for shares will be given priority in the allocation of shares, though those who did not pre-register can still apply.

How do I pay?

If paying by cheque, the investor will have to enclose the full cash amount applied for with the application form and will be refunded the relevant amount after the allocation is scaled back.

Payment by direct debit from a bank account will also be allowed. This will be neater, as the exact amount can then be deducted from the account when the share allocations are finalised.

What are the prospects for the shares?

This depends on what price is set for the flotation and how the stock-market is performing in early July. Typically, the price will be set with the intention of seeing a reasonable rise in early trading - this initial buoyancy will be encouraged by big financial institutions which do not get all the shares they applied for seeking to buy more. So, in the short term, the shares should rise, though this cannot be absolutely guaranteed.

And beyond that?

In the longer term share performance will depend on the health of the stock markets in general and on how Telecom itself is performing. The group has put in a strong financial performance in recent years, but faces increasing competition on the home market. It is also looking to diversify its business in Ireland and overseas. In the medium term, Telecom shares will rise and fall with the market and, if the group performs well, will do better than the average. Investors will get a return through an annual dividend and through any rise in the share price.

Any other attractions?

One reason to hold the shares is that those who keep them for a year will be given a loyalty bonus. They will get one free share for every 25 shares they buy - representing a return of around 4 per cent. At a time when bank interest rates are so low, this is a significant incentive.