First National Building Society has cleared the final regulatory hurdle in its drive to become a publicly quoted bank. The mutual society is now expected to launch its flotation prospectus and timetable when it announces interim results within the next two weeks. The flotation is expected to take place in October subject to market conditions.

Following the approval of the conversion and flotation scheme by the Central Bank at the end of June, there was a period of one month in which objectors could petition the High Court for cancellation of the scheme. This period has passed without any petitions.

Some 220,000 FNBS members will qualify for free shares in the flotation while another 100,000 members will get small cash payments. Qualifying members will get 450 free shares worth an estimated £2,000.

The minimum value of the free share allocations has been estimated at £1,170 by First National. But the actual value will depend on the share price which will be set closer to the flotation date. Members should soon receive claims forms for their free shares.

Cash payments will be based on the balance in the members savings account a payment of 20 per cent of the balance on the account at July 1st 1997 will be made subject to certain conditions. The maximum cash payment will be £200. First National members overwhelmingly approved the conversion of the mutual society into a publicly quoted bank at an annual general meeting on May 18th. Some 97 per cent of the members who voted approved the conversion. On flotation the FNBS name will be changed to First Active. The flotation is expected to value First Active at between £250 million to £290 million and the company is expected to raise up to £150 million in new equity to fund future growth and development.