Shares in Standard Life climbed as much as 6.5 per cent on their market debut today as the insurer ended eight decades of mutual ownership with Britain's biggest initial public offering since 2000.
At 12.30 pm, shares in Standard Life were trading at 242 pence, up 5.2 per cent on the 230p initial public offering (IPO) price set on Friday below the middle of a 210p-270p range.
At around 242p a share, the Edinburgh insurer would have a market value of £4.89 billion, making it the fifth-largest UK-listed insurer, just above another former mutual, Friends Provident.
Standard Life, Britain's last major customer-owned insurer, shocked rivals and members in 2004 when it announced plans to list on the stock market after three years of falling equity markets battered its core with-profit products and tough new capital requirements were introduced.
Since then, it has slashed jobs and responded to falling demand for once key products by cutting commissions and focusing on more lucrative business. It returned to profit in 2005.
Standard Life's advisers estimated in April it would have traded at 240p to 290p a share, had it been floated at the time. Two months later, it set the expected offer range at 210p-270p.