A buying frenzy has swept London with yesterday's successful GBP6.5 billion (HK$81.83 billion) listing by life insurer Norwich Union, ending its 200 years as a mutually owned organisation.
On the first day of trading, shareholders received 23 per cent profit on their shares, as the price soared to 356.5 pence at the open. They later eased to 333p, although this still represented a 15 per cent profit.
Such a performance is typical of the demutualisation trend in Britain, which has seen several building societies (mortgage lenders), list and soar.
The flotations have grabbed the headlines because they are often accompanied by windfall payouts to the savers or policy-holders, who under the mutual structure previously owned these institutions.
With the windfalls running to thousands of pounds, and being paid out to millions of people, it has even prompted some concerns among economists that they may add to inflationary pressures on the economy.
Almost three million people yesterday received an instant windfall worth hundreds of pounds. The rise came as institutions rushed to buy shares, after few were made available due to tight allocation.