Satellite operator set for take off

SHARES in satellite operator Inmarsat were expected to enjoy a healthy premium when dealings began today after the float was priced at the top of the forecast price range.

Bankers to the issue, JP Morgan Cazenove and Morgan Stanley, set the issue price at 245p late last night, giving the company a market value of £1.12bn.

The offer makes paper millionaires of several of the group's management, led by chief executive Andrew Sukawaty, whose stake is now worth £13m.

The success of the issue will come as some relief to other investment bankers working on the imminent float of several large companies. These include the controversial offering of poker website operator PartyGaming, which could be worth up to £4.7bn, Hovis baker RHM (£1.3bn), Empire Online (£500m) and property group Mapeley (£120m).

The listing will raise a net £354.6m for Inmarsat, after expenses of £12.9m, and sees 33% of the shares freely floated.

Venture capitalists Apax and Permira, who jointly paid £430m for a 51% holding some two years ago, have not sold shares in the offer but their stake will be diluted to 33.5%.

Bankers, who have the option to sell another 15 million shares from existing holders if demand is strong in the next few days, said the issue was 'comfortably oversubscribed'. Sukawaty said: 'We are particularly pleased with the strong calibre of the shareholder base.'