LONDON (SHARECAST) - Royal Bank of Scotland(RBS) said it had priced Direct Line at 175p a share, valuing the insurance firm at 2.63bn pounds.
The offer comprises 450m existing shares, representing 30 per cent of the 1.5bn total, raising £787m for RBS.
RBS had said it would float the firm at between 160p and 195p a share.
The bank has the right to sell another 4.5% of the insurance group's total shares should there be surplus investor demand.
Following admission, the bank will continue to hold 65.3% of the total shares in Direct Line, which owns the Churchill and Privilege brands, as well as the breakdown service Green Flag.
RBS Group Finance Director, Bruce Van Saun, said the initial public offering was an important milestone in the bank's restructuring plan.
"We believe Direct Line is on the path to a bright future," he said.
RBS, which is 82% owned by the UK taxpayer, is being forced to sell Direct Line by the end of 2014 under EU state aid rules after the government was forced step in with a £45bn bailout in 2008.
LONDON (SHARECAST) - Royal Bank of Scotland(RBS) said it had priced Direct Line at 175p a share, valuing the insurance firm at 2.63bn pounds.
