Kingston float valued at pounds 700m

Kingston Communications, the Hull-based telecoms company owned by the local council, is likely to be valued at more than pounds 700m when it floats on the Stock Exchange on 19 July, about 10 per cent higher than expected.

The company expects to price its shares between 175p and 225p. Hull City Council will offer 100 million shares, cutting its stake to 49.9 per cent, and Kingston will offer 75 million shares to boost its capital reserves. Investec Henderson Crosthwaite, one of the brokers for flotation, has set a price range of pounds 684m to pounds 757m for the offer. Employees, management and top executives will split about pounds 7m in share options if performance targets are met.