Natwest: Hunt plots ‘tell Sid’ sale of remaining government stake
The Chancellor Jeremy Hunt has revealed the government will look to offload its remaining stake in Natwest to retail investors over the next year as part of a bid to boost participation in public markets.
The government took a majority stake in Natwest after the 2008 financial crisis but has been shaving down its ownership of the lender and feeding shares back to the market.
In the Autumn Statement, Hunt said the government will now look to sell a chunk of its remaining 38.6 per cent stake to retail investors.
“I will explore options for a Natwest retail share offer in the next 12 months subject to supportive market conditions and achieving value for money,” the Chancellor said.
“It’s time to get Sid investing again,” he added, referencing the state backed share-ownership campaign under Thatcher in the 80s.
The government offloaded its latest tranche of shares in May, cutting down a stake which sat at 84 per cent at its peak. The government is looking to entirely exit its holding in the bank by 2025-2026.
The commitment to include a retail offer was welcomed by investment firms today who said the move may help push amateur investors into the retail markets.
The announcement of a retail offer was welcomed by retail investment groups today who said the move may help push amateur investors into the retail markets.
“At this critical moment for the UK’s capital markets, involving the British public in Natwest’s privatisation makes complete sense,” said Anand Sambasivan, CEO of London Stock Exchange-backed fintech PrimaryBid.
“It’s an opportunity to rebuild engagement and ownership in our public markets. It’ll be tweet Sid this time.”
Susannah Streeter, head of money and markets at Hargreaves Lansdown, added: “Giving retail investors a slice of ownership in Natwest is a welcome move given that they have been left out of previous sales, which have been reserved for institutional investors.”
The commitment comes amid wider moves to boost retail participation in the equity markets and unlock a potential £740bn of untapped retail capital.
Former City minister Andrew Griffith has issued a “come back Sid” call at numerous conferences this year in reference to the Thatcherite privatisation campaign.