Northern Rock, the latest British building society to turn its back on mutuality and become a broader based lender, arrived on the London stock market this week to a triumphant reception. Analysts has expected the stock to command a price of around 285p but the equity surged to 470p in early dealings before settling back at 463p, valuing the Newcastle-based group at £2 billion sterling. All qualifying members received 500 free shares with 376,000.

Northern Rock management, pleased at the bullish reception to the flotation, was relieved that, while 43 per cent decided to sell their shares, the equity was widely dispersed, with no large volumes of stock passing into the hands of a potential predatory stakebuilder. The market has bestowed a rock-solid rating, the shares, at 463p, being a whopping 15 times in excess of forecast current annual earnings. Our own First National is gearing up for a stock market listing later next year, following in the footsteps of the Irish Permanent.