Newly issued shares to sell at offer price of 175p

Red phone Direct Line

Direct Line Group’s parent company RBS has increased its initial public offering of ordinary shares to 517.5 million.

The insurer, which floated last Thursday, will sell the shares at the offer price of 175p per share.

Goldman Sachs, acting as the stabilising manager for the offer, exercised the option to raise the number of shares from the initial sale of 17.5 million shares.

The 517.5 million total of shares represents 34.5% of the 1.5 billion shares the company has in issue.

Following the share issue increase, RBS will continue to own 65.3% of the shares in the company.

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