AJ Bell managing director Charlie Musson comments on the government’s plan to conduct the NatWest retail share offer in the summer at the earliest:
“Confirmation that the NatWest share offer could commence over the summer is a little nebulous. To start building interest from retail investors the government needs to set a clear timeline for the sale process, including when they intend to set the sale price because any discount on offer is likely to be the key factor that drives interest from the public.
“There is a fine line to tread here, since the government needs to balance getting a good deal for the taxpayer, while also offering an enticing opportunity for investors without suppressing the value of shares already in circulation.
“NatWest, formerly RBS Group, is home to a number of iconic banking brands. Combined with the promise of a ‘Tell Sid’ style promotional campaign, the share offer puts investing right in the spotlight, hopefully providing a tonic that prompts more people to think about investing in shares and funds if they don’t already.
“Millions of people enjoy the benefits of long-term stock market investing, but far too many people don’t get involved in investing because they fear it is too complicated. Investing is much easier than many people realise, with investment platforms making it straightforward to invest in shares and funds, at low cost, managed on your phone or computer.
“Hopefully this campaign will put share ownership on the map for many people, in particular those who hold too much cash because they’re not aware that investing in the stock market is really an option for ordinary people*.”
*https://www.fca.org.uk/publications/corporate-documents/consumer-investments-strategy-1-year-update Among consumers with £10,000 or more of investible assets, 58% (9.7 million UK adults) held the majority (75%+) or all of this in cash in 2022. Of these over two-fifths (4.2 million UK adults) said they had some appetite to take risk when investing.