18 November 2005 – The French government has set a final share price of €33 ($39) for the initial public offering of EDF shares, which begin trading on Monday.
The government is selling 15 per cent of the state owned energy group and expects to raise around €7bn. The share price is at the higher end of the range suggested and although some experts had predicted that it would deter investors it appears to have had the reverse affect.
Almost 5 million individual investors have ordered shares and the government has responded by increasing the proportion of shares available to the public from 50 per cent to 60 per cent. As a result, the amount of shares reserved for companies and institutions has fallen to 40 per cent.
Some experts have predicted that the move to increase the amount of shares available to individuals will help to quell much of the hostility from the public and trade unions toward the sell off.
Individuals will receive a €1 discount on the final share price.