Amersham International (Hansard, 24 February 1982)

§ Mr. John Moore

The offer for sale of Amersham International was 24.6 times subscribed by applications from company employees and the public at large.

The employees are being allocated 1.8 million shares or 3.6 per cent. of the issued share capital under the special arrangements made for them by the Government. Over 99 per cent. of employees took up the Government's offer of £50 worth of free shares. Well over 80 per cent. decided to put in their own money for shares to be matched by free shares from the Government on a one for one basis. The free shares taken up under these arrangements are worth on average £250 per applicant. In addition to these arrangements 40 per cent. of employees applied to buy shares under the preferential application scheme, and will receive their applications in full.

The arrangements for allocation of shares to the general public involve substantial scaling down and an element of balloting, and have been devised to further the Government's policy of wider share ownership. Those applying for fewer than 6,000 shares will be subject to a ballot but the shares allotted to the groups in this category will average 6.3 per cent. of the total shares applied for. Applicants for 6,000 shares or more will receive 3.5 per cent. of what they applied for subject to a minimum individual allocation of 350 shares.

This basis of allocation ensures that the number of shares being allotted to smaller investors is a significantly greater proportion of those applied for than is the case with the larger applications.

The issue will raise a gross sum of £71 million of which £5.7 million will go to the company, and the balance net of the issue costs to the Exchequer.

398W