British Airways (Hansard, 9 February 1987)

§ Mr. Moore

Over a million applications for shares were received in the United Kingdom public offer which closed on 6 February. Applications for up to 100,000 shares amounted to 2.9 billion shares in total, and 5,000 applications at higher levels amounted to a further 4.9 billion shares. Clawback was triggered and accordingly the number of shares to satisfy public and employee applications was 341.4 million. I have decided that the basis of allocation will be as follows:

Shares applied for	Allocation
400–1,500	200
2,000–5,000	250
6,000–10,000	300
15,000–35,000	350
40,000–100,000	1 per cent. of
	amount applied for
Above 100,000	Nil

The public directly will gain the biggest benefits from this sale. Over a million private investors will be able to add British Airways to their portfolios. The overwhelming majority of British Airways employees have also applied for shares. As a result, private investors and employees will hold 47 per cent. of the shares. The public will also benefit through institutions such as pension funds and insurance companies which will hold 36 per cent. Overseas investors will receive 17 per cent.

48W

I am delighted that the public has placed such faith in this great British company, and that British Airways can look forward to the future with the support of a broad base of shareholders.