This is the first chance investors have had to own a part of a national treasure and ensure that it stays in the UK and is accessible for everyone to enjoy

Peter Butler, Flying Scotsman chief executive

The group plans to sell 5.8 million new ordinary shares at 38p each, with applications for the shares closing at 1500 GMT on 25 January 2002.

Directors hope to exploit great interest in the train from the worldwide band of steam and railway enthusiasts.

They have already struck a deal with US computer giant Microsoft to feature the Flying Scotsman in its "Train Simulator" game.

A five-year deal has also been negotiated with Venice Simplon-Orient Express Limited which will see the famous locomotive pulling the luxury trains British Pullman and Northern Belle within the UK.

'Unique position'

The owners also plan to open a visitors' centre in Edinburgh and launch a range of brand merchandise, including luggage and clothing.

Group chief executive Peter Butler said: "Ownership of Flying Scotsman puts our company in a unique position to exploit both the rail enthusiast market and younger generations who will find new interest in playing Microsoft's Train Simulator.

"This is the first chance investors have had to own a part of a national treasure and ensure that it stays in the UK and is accessible for everyone to enjoy."

Flying Scotsman currently has a market capitalisation of �3.5m that will increase to �5.7m after admission to trading on OFEX.

Operating profit for the group is forecast to increase to �2.75m by the end of 2004, from �360,000 for the year to the end of December 2001.