Direct Line floats at £1.75p

The RBS has floated 30% of the Direct Line Insurance Group, price announced at £1.75, towards the lower end of expectation,s that ranged from £1.65 to £1.95, valuing the entire group at £2,6 billion

This sale is part of the EU directive that permitted the Government bailoutof the RBS Group back in 2009, to the tune of £45 billion and made shareholders of all of us in the UK.

Market conditions in the middle of the Euro crisis haven't been good for getting any type of share offer away in recent months but the initial interest in the shares have been good and markets have been relatively calm. 

Under the terms of the EU deal the group needs to totally divest itself of the Insurance side of the business by 2014, with over 50% sold by the end of 2013.

The shares closed their first day at £1.88, an encouraging sign for the eventual sale of the other 70% of the stock, that has given the RBS Group share price a boost by 4%.