(Bloomberg) -- The UK government is finalizing a share-sale proposal that will cut its stake in NatWest Group Plc to as low as 10%, according to Sky News.
The offering to retail and institutional investors could be announced in late May or early June, Sky News reported, citing unidentified sources.
The government is considering allowing individuals to invest between £250 and £10,000, with a modest discount to the share price. The proposal is also expected to give one bonus share for every 10 acquired and held for at least a year by retail investors, Sky said.
The UK is hastening its exit from NatWest 16 years after rescuing the then-Royal Bank of Scotland during the global financial crisis. Open-market sales over recent months have cut its stake to 28%, worth about £7.4 billion ($9.3 billion), data compiled by Bloomberg show.
The share sale is part of a plan to offload the entire holding by 2026, while encouraging wider retail participation in the equity market. Stronger-than-expected investor demand may shrink the UK's stake even further than anticipated, Sky said, adding that the sale plans could be amended.
NatWest has jumped 39% this year, making it the second-best performer on the FTSE 100 Index, which has gained 6.2%.
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