What we are doing here is a very solid business move, a strategic move, not something that is opportunistic

Jonathan Bloomer, Prudential chief executive

After admitting to having had second thoughts about the timing of the float, Prudential decided to go ahead despite worries over continuing stock market volatility.

Egg: Flotation in June

Prudential plans to offer 18% of Egg's share capital. Egg will award its directors and some senior managers about 4 million shares plus cash payments totalling �830,000.

Egg has one million customers and deposits of nearly �8bn.

In the three months to 31 March, the bank says its losses before tax were �38.3m - but it still expects to break even during the fourth quarter of 2001.

The bank wants to use the money raised by the flotation to expand through acquisitions.

Mike Harris, Egg's chief executive, said he had three potential goals for acquisitions: to expand internationally, particularly into Europe; to buy in technology; and to acquire innovative internet business models.

Payment details

About 800,000 customers are estimated to be eligible to take up the share offer, but there has been concern whether the offer mechanism could shut out some of them.

Egg has stipulated that share applications by private investors must be paid for using Switch or Visa debit cards, and those without such facilities will miss out.

Other investors may be scared away by the flop of recent market flotations like that of Lastminute, Interactive Investor International and WorldOnline.

Shares in technology companies have been taking a pounding since the euphoria of early in the year and several companies have reviewed their flotation plans.

London's Techmark index has fallen about 50% since its all-time high of 5753.46 on 6 March.

Rethink

The Cardiff-based video-on-demand company, Yes TV, said on Monday it was ditching its plans for a listing.

Internet services company Telecity also postponed floating, saying it would wait until conditions had stabilised.

Telecity's chief executive, Mike Kelly, said: "We see the initial public offering of Telecity as the beginning of a relationship with the capital markets.

"We feel it is best for all concerned to enter into such an important relationship in more stable market conditions."