NORWICH Union policyholders will be pleased to hear that, unofficially, their shares are currently being priced at around 349p in London, well ahead of the suggested guide price of between 240p and 290p.
At these prices, policyholders receiving free shares can expect an even bigger than expected windfall, with the average share payout now expected to be around £1,400.
Financial bookmakers in London yesterday predicted that the shares would open at 349p, creating an unofficial grey market price for shares ahead of the flotation on June 16th.
Brokers in London, however, were yesterday suggesting a more "sensible" opening price of between 310p and 320p, still well above the guide price.
Many Norwich members, particularly those subscribing for the maximum allocation of £100,000, may be disappointed, however. They could end up with only a fraction of the shares sought if the offer is heavily over subscribed, according to brokers.
In this event, the share allocations are likely to be biased towards those seeking the smallest number of shares.
Most analysts suggest that the company could set a limit, say of £5,000, whereby anyone applying for anything up to that amount would be guaranteed those shares.
