The Federal Government has set the price of Telstra shares at $4.50 when the second offering hits the market next month.
The Minister for Finance, John Fahey, announced the share price yesterday. Fahey confirmed investors would be able to purchase the shares in instalments.
Retail investors will receive a 40 cent discount compared to the institutional price and retail shareholders who keep their shares until November next year will be rewarded with a further 15 cent discount on the second instalment payment, Fahey said.
Telstra shares lost ground on the ASX yesterday, dropping to a low of $8.02. Opening at $8.10, the stock reached a high of $8.15 before slipping back to $8.06 at the close of trading.