Members of the First National Building Society are expected to approve its conversion to a publicly quoted company at its annual general meeting today. If approved, the society will be renamed First Active, and will begin trading on the Dublin and London stock markets in the autumn. The conversion will entitle members to free shares or a one-off financial payment. First National has stated that 220,000 account-holders will be entitled to receive free shares, while a further 100,000 savers will qualify for a cash payment.

Each qualifying member will receive 450 free shares for each qualifying loan or deposit account they hold with the society. The shares are estimated to be worth around £1,170, but their actual value will depend on the price at which the shares begin trading in the autumn.

Where members fail to qualify for free shares, the society will make a payment equivalent to 20 per cent of the balance held in a qualifying account on July 1st, 1997, up to a maximum of £200. Free shares and cash payments will be issued at the time of flotation.

First National staff will also be entitled to receive free shares, while its three senior executives will be given share options over 3 per cent of the total company shares.

The flotation is expected to value First Active at between £250 million and £390 million on the Irish and British markets. The company will also be seeking to raise up to £150 million in new equity.

The board contends the flotation is the best way to expand and develop the society. It will be emphasising to shareholders that the flotation will improve its competitive position and would give it access to an unlimited source of funds, freeing it from more restrictive funding requirements laid down for building societies.