United Kingdom to sell £2bn Lloyds shares to households

According to reports today citing Treasury sources, more than 62,500 people have expressed interest in registering for the shares since yesterday’s announcement.

It hired an investment bank to drip-feed shares back into the market at a price above what it paid to bail the lender out and has thus far recouped £15 billion from sales of Lloyds stock.

In a bid to avoid wealthier investors snapping up the shares, anyone applying for less than £1,000 will be prioritised.

And once the expected dividend is factored in, investors could be set for a “pretty attractive” return, said Hargreaves Lansdown senior analyst Laith Khalaf. “However, the bonus share plan will be capped at £200, and ultimately investors should only buy if they feel comfortable with the investment case for Lloyds”.

It has been gradually selling off shares to institutional investors, but this marks the first chance for the general public to get involved.

The second Lord of the Treasury, George Osborne, regarded this deal as the biggest privatization for two decades and said that the proceeds will be used to reduce the national debt.

The generous discount offered on Lloyds Banking Group shares means the Treasury could end up making a loss on the sale if the share price does not rise in the coming months.

It added: “Military personnel and their spouses stationed overseas will be able to participate in the sale, where possible”. The government said there would be a nationwide advertising campaign to raise awareness of the sale. “This will outline the next steps for people who wish to apply for shares”. Shares in Lloyds were up 1% in afternoon trading in London.

In a written statement, Lloyds said only that it noted the government’s decision to sell shares to the public.