NatWest Retail Offer
Published 6 March 2024
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At Budget 2024, the Chancellor announced the government’s intention for a sale of a part of its shareholding in NatWest, one of Britain’s largest banks, directly to retail investors, otherwise known as individual investors.
This is part of the government’s plan to return NatWest to private ownership by 2025-26, exiting its shareholding acquired as a result of the 2007-09 financial crisis.
The sale could take place this summer at the earliest, subject to market conditions being supportive and achieving value for money.
A retail sale could not only help achieve the goal of exiting the NatWest shareholding, but also help support wider government priorities on our ambitious financial services agenda, including promoting retail investing and the UK’s capital markets.
FAQs:
What is a retail sale?
A retail sale would be an opportunity for individual investors to purchase NatWest shares from the government, either directly (such as by applying online) or via financial intermediaries with whom they have an account.
Why does the government want to proceed with a retail sale?
A retail sale would help the government further reduce its stake in NatWest, which it intends to fully exit by 2025-26, subject to market conditions and sales representing value for money.
Selling to individual investors could also have wider policy benefits, including encouraging retail investing to create a stronger savings and investment culture and helping to re-invigorate the UK’s capital markets through a landmark transaction.
When could a retail sale take place?
The Chancellor has announced that the earliest a sale could take place is this summer, subject to supportive market conditions and achieving value for money.
The government will make a final decision on whether to launch a retail offer in due course.
Who would be able to take part in this sale?
The government would intend for the retail offer to be open to a broad range of investors above the age of 18 located in the UK.
Specific information regarding eligibility will be made available at a point closer to the implementation of any sale.
How many shares will I be able to buy?
The number of shares made available to eligible retail investors will be decided by the Chancellor at the time of implementing any sale.
Further information on the criteria for applying for shares, including the amounts eligible individuals could apply for, will be made available at a point closer to the implementation of any sale.
How much will the shares cost?
The Chancellor will provide details regarding pricing at a point closer to the implementation of any sale.
Where can I access guidance on investing in shares?
It is important for investors to carefully consider the potential benefits and risks before deciding whether to invest in any stocks or shares.
The following resources provide further relevant information:
Why does the government own NatWest shares?
As part of a number of interventions made in the financial services sector to protect economic and financial stability as a result of the 2007-09 financial crisis, the government acquired an 84% shareholding in the Royal Bank of Scotland (now known as NatWest Group).
It was never the government’s intention to be a permanent shareholder in NatWest. With the objectives behind the original intervention long achieved, the government has been returning its NatWest shareholding to private ownership when market conditions allow and when it represents value for money to do so.
To date the government has sold over £14.5bn worth of NatWest shares through a combination of sales to NatWest and sales to institutional investors. These sale proceeds are returned to the Exchequer and go towards supporting the public finances.
The government’s NatWest shareholding stands at around 33% as of 23 February 2024, with the bank now majority-owned by private investors.
Further updates will be published on this page in due course.