The telecoms company Energis will command a market value of between £815 million and £962 million when it floats next month.

Shares in the company, being floated off by its parent National Grid, will be priced at between 250p and 325p although the final price will not be known until December 9.

Analysts had forecast a market value of up to £1.3 billion.

Just over a half of the ordinary shares in the company is being floated on the stock market in a move that will raise between £173.9 million and £227.6 million.

National Grid will retain 49.9% of the ordinary shares but 100% of the convertible non-voting preference shares, leaving it with an economic interest of about 74%, Energis said.

The company will supply telecoms services to about 14,000 business customers via the Grid's high voltage electricity pylons.

The Director of Strategy, John Beaumont, said: "We are wholly owned by the National Grid.

"I think the float demonstrates the wisdom of the original investment to diversify into a new industry using their existing infrastructure.

"In many ways, we have to do more of the same, to continue to grow and develop profitably."

Energis' customers include the BBC, Boots, Demon Internet, ICL Pathway, Microsoft, Mirror Group Newspapers, National Grid and Virgin Atlantic Airways.

 
John Beaumont, from Energis, talks about the flotation.

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