The UK Financial Services Authority is likely to examine the common IPO practice of drumming up retail demand for shares through announcing huge levels of interest ahead of a float.

The technique was pioneered in the 1980s during the big privatisation sales. Investment banks have used it ever since to help stimulate interest in issues like the Orange flotation. Advisers to the float have helped promote the deal by publicising tantalising statements to the effect that more than one million people had applied for application forms and/or prospectuses.