Portugal's 1995 Portugal Telecom float was 4 times subscribed, its largest privatization.

Portugal Telecom, formed in May 1994 from the merger of the state's two telecom operators, carried a pension-fund deficit and heavy debt; the government's privatization model sold the company in phases.

In June 1995 the Council of Ministers fixed the share price at 2,800 escudos, closing the largest privatization yet done in Portugal: 26% of the capital, about 140 million contos, with total demand four times the offer and the public tranche more than 26 times subscribed.

The green shoe lifted the sale to 28% and about 150 million contos; trading began June 2 and shares were listed on the Lisbon and New York exchanges, with institutions oversubscribing more than fivefold at home and abroad.

The first phase sold 26% of Portugal Telecom for about 140 million contos; demand was four times the offer, with the public tranche subscribed more than 26 times.

Bookbuilding let the price reflect institutional demand.

Reserving shares for small savers and emigrants widened the base.

A staged model kept the state in control while testing the market.

The dual Lisbon–New York listing attracted foreign capital.

A staged sell-down with a retail-friendly tranche can price a telecom monopoly at a premium: bookbuilding plus a public offer produced fourfold demand and a successful dual listing.

The first phase funded the pension and restructuring program and became the reference point for Portugal's privatization program; the state continued selling down through the late 1990s as Portugal Telecom grew into one of Europe's faster-moving operators.