Brokers overwhelmed by Railtrack fever

Brokers overwhelmed by Railtrack fever

More than 650,000 applications have been received from private investors for shares in Railtrack, the railway track and signalling company which is being privatised on Monday. SBC Warburg said it had raised its original estimate of 500,000 and now expects the part of the sale open to ordinary investors rather than finance houses to be oversubscribed three times.

Because of the demand the Government is now expected to raise from 30 per cent the amount of the company to be sold to the public and reduce the 70 per cent originally allocated to City institutions. Brokers have already said the share price is likely to come in at the top end of its 350p to 390p range on Monday.