Dixons plans Freeserve float

Dixons is gearing up to float Freeserve and plans to offer its 1.3 million users priority share allocations.

No timetable has been set for the float, which is valued at between £1 billion and £2 billion. It will be the first in the UK to take place online.

Sources said Dixons will advertise the float on its home page. Freeserve members will click on a button to order a prospectus, but will purchase the shares by conventional means.

A representative for Freeserve said: 'We intend to proceed with the float as planned. There has been some speculation that members will receive priority share allocation - that is our intention, but, at the moment, we don't have a timescale, so we cannot confirm anything.'

Dixons is also looking for institutional investors in the UK and the US, where it will be listed on the Nasdaq market.

It is likely that Dixons will only sell 10 per cent of Freeserve - another 10 per cent will be on the issue of shares. Freeserve is being administered by Cazenove and Credit Suisse First Boston. Analysts said if the float goes to plan, Dixons will make a 10,000 per cent return on its capital investment.