UK insurer Saga prices $3.4 bln listing at bottom of range-Reuters

(Reuters) – UK over-50s insurance firm Saga has priced its London listing at the bottom of its original range, two sources familiar with the matter said, the latest sign of weakness in an increasingly choppy listings market.

Saga’s shares will be priced at 185 pence ($3.12) each, the sources said on Thursday, the bottom of a range that originally went up to 245 pence.

A source told Reuters on Wednesday that a price of 185 pence would give Saga an equity value of 2.03 billion pounds ($3.43 billion).

Saga, which is owned by private equity firms Permira , Charterhouse and CVC, is selling 550 million pounds of new shares in its initial public offering (IPO).

There is a 15 percent greenshoe for secondary shares, allowing shareholders to sell down their stakes if demand proves sufficient, the two sources said.

The company has grown from a travel company in the seaside town of Folkestone to a pan-service giant offering everything from a dating service to dieting tips to its base of 2.1 million customers.

Saga was not immediately available for comment.