Saga share price eases in second day of conditional trading

on May 27, 2014
Updated: Apr 9, 2020
Listen, Tuesday, May 27: Shares in Saga (LON:SAGA), the over-50s insurer which floated on the London Stock Exchange last week, have dropped below the float price during their second day of conditional trading.

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**Saga shares drop below float price**
According to the LSE, as of 12:30 BST, Saga’s share price had lost 2.3 percent to 180.75p. Since then the price has rebounded slightly to 181.84p, a 2.03% drop on the IPO share price.

**Latest News:**
>> Saga share price claws back losses in early morning trade – Insurer closes in the red on first day of conditional trading. As of 08:15 BST, 30 May, Saga’s share price had gained 0.40 percent to 186p
>> Saga share price edges higher – As of 08:37 BST, Saga’s share price had added 0.3 percent to 186.50p after having started trading on a downbeat note
>> Unconditional trading starts tomorrow – Shares close below listing price on second day of conditional dealings
>>Should you buy Saga shares direct or from a stockbroker? – IPOs are often available directly from the company scheme and stockbrokers. There are pros and cons of buying each approach.

Saga’s shares are currently changing hands below their offer price of 185p despite the company having priced them at the very bottom of its price range, reflecting lacklustre demand from institutional investors. (Saga share price announced) The final Saga share price was set after the company narrowed the price range of the offer to between 185p and 205p per share after having previously set its guidance at between 185p and 245p.
Today’s drop follows a downbeat market debut on Friday which saw Saga’s shares trade barely above their float price and close flat at 185p. (Saga share price closes flat)

Unconditional dealings are scheduled to begin on Thursday at 08:00 BST when the company will be admitted to the premium listing segment of the official list and to trading on the LSE’s main market.

**No Royal Mail repeat**
The Saga IPO was in stark contrast to the market debut of Royal Mail (LON:RMG) whose shares soared on their first day of trading. (Royal Mail’s share price surges 38% on market debut)
Some analysts have recently pointed to “float fatigue” which has impacted the performance of companies such as Pets at Home (LON:PETS) and last week prompted high street fashion brand Fat Face to cancel its London IPO plans, citing “current equity market conditions”.

Despite signs that investor appetite for floatations has reached a saturation point, Lloyds Banking Group Plc (LON:LLOY) this morning announced its intention to float 25 percent of shares in its TSB brand. (Lloyds share price: Lender fires starting gun on TSB IPO) As with Saga, the bank is trying to boost retail demand by promising free loyalty shares to individual investors.


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