Members have changed the direction of Standard Life's history

The insurance firm originally thought it could sell the shares at between 240 and 290 pence each but will now offer them at between 210p and 270p.

The reduction reflects recent falls in the value of leading blue-chip shares on the FTSE 100 index.

Existing members of Standard Life will now see the value of their windfalls cut to an average of about �1,540.

Standard Life chief executive, Sandy Crombie, said he was upbeat about the flotation despite the price changes.

"Early indications suggest that there is strong interest in Standard Life coming to the stock market" he said.

"We look forward to welcoming our members and customers as shareholders in Standard Life, alongside institutional and retail investors."

Windfalls

Windfall shares will be sent to about 2.4 million members of the business as part of the process which will see them relinquish their status as members of the mutually owned insurer.

In addition, 5 million members and customers can buy new shares at a 5% discount to the offer price.

Earlier this month, 98% of voting members approved its proposed stock market flotation, scheduled for next month.

Standard Life had hoped to raise more than �1bn by selling shares to investors in order to boost its finances.

This would have valued the entire business at up to �5.5bn.