Strong response to Lloyds share offer on first day

Treasury sources have revealed 62,500 people have registered their interest in the government’s Lloyds Banking Group share offer, Sky News reported.

The government is looking to sell the remainder of its stake in the bank it bailed out in 2008.

It still owns a 13% stake and said on Monday it planned to raise at least £2bn to reduce national debt by selling shares to private investors.

The public will be offered a 5% discount off the market price, with those applying to invest less than £1,000 being given priority.

Hargreaves Lansdown senior analyst Laith Khalaf said on Monday the offer is an attractive deal for investors.

“Based on £1,000 invested, an investor could expect a £50 price discount, an anticipated £50 dividend in 2016 (if the market price remains at today’s level at the time of the sale), and a further £100 in bonus shares a year down the line.

“Of course the dividend is not guaranteed, but that still looks like a pretty attractive package.”

Another Hargreaves Lansdown analyst said it does provide “a welcome opportunity for smaller investors to at least participate in a fraction of the sell-off”.