The government declares Telecom Éireann share prices at three pounds and seven pence.
Trading will begin on Irish and international stock exchanges tomorrow. Already indications are that shares should increase in value by about fifteen per cent when trading begins. The decision to pitch the price at just over three pounds raises the question as to whether they will be good value for institutions that want to buy them.
The decision on the share price reflected a battle amongst different government elements over whether the price should be high or low. Minister for Public Enterprise Mary O'Rourke describes the process by which the price came about as animated.
The government also announced details of how many shares investors would receive.
A staggering 574,000 people applied for shares and the average application amounted to £6,674.
The share allocation will be as follows:
- If you applied for less than £3,000, you will receive the full amount requested
- If you applied for £4,000 worth, you will receive £3,800 worth
- If you applied for £5,000 worth, you will receive £4,500 worth
- If you applied for £10,000 worth, you will receive £6,600 worth
- If you applied for £20,000 worth, you will receive £9,400 worth
What happens in the stock markets over the coming days will be crucial for the performance of Telecom Éireann shares.
Independent financial adviser Frank O'Brien believes that other stocks on the market offer equally good value to Telecom Éireann shares.
The level of interest in this flotation has been unprecedented with over twenty per cent of the adult population applying for shares.
An RTÉ News report broadcast on 7 July 1999. The reporter is Richard Curran.