The Treasury is finalizing proposals for a bonus share structure alongside minimum and maximum investment levels for NatWest Group, according to sources at Sky News. Ordinary investors who hold onto stock they acquire in the taxpayer-backed bank will be awarded ‘bonus’ shares under this plan, expected to be finalized by ministers later this month.
The plan, announced by Chancellor Jeremy Hunt last year, aims to create a new generation of retail investors. The retail offer of NatWest shares will be launched alongside an institutional placing, potentially reducing the government’s stake in the bank to as low as 10%.
Key details of the plan include a likely £10,000 cap on applications from the public, with a minimum investment of £250 to encourage wider participation. Retail investors who retain their shares for at least a year may receive one bonus share for every ten bought. A modest discount to the bank’s share price will also be applied to incentivize take-up.
The government’s stake in NatWest has been steadily reduced over the last eight years, and the upcoming retail offer could bring the bank closer to full private ownership. The announcement to launch the offer is expected in late May or early June, pending market conditions and political stability.
The plan has been closely monitored by Chancellor Jeremy Hunt and Prime Minister Rishi Sunak, with the aim of boosting investor confidence in NatWest. The bank, formerly known as Royal Bank of Scotland Group, has undergone significant changes in leadership and branding in recent years. Stay tuned for further updates on this developing story.