RBS to float Direct Line at discount price Books are expected to open this week with a price midpoint of about £2.6bn, reports the Financial Times, citing people close to the flotation. Sources said that the offer was "priced to go." The part-nationalised lender wants to woo prospective investors with a discount to the price tag of £2.7bn and £2.9bn estimated by equity analysts. The FT reports that some banks on the deal had pushed for a value of as much as £3.4bn, but that institutional investors had made it clear that a discount would be demanded. A £2.6bn flotation would put a price on Direct Line only 1.13 times its tangible book value, while insurance firm RSA currently trades at 1.7 times. With 1.5bn shares being issued, the flotation price is expected to be around £1.75. RBS took £1bn in dividend payments from Direct Line this year ahead of the floatation. The bank is still 83pc owned by the state and was forced to float the insurance business by the Government as a condition of its £45bn bail-out during the financial crisis.