Peter Wood to remain largest shareholder
Esure has confirmed that it will float on the London Stock Exchange, ending months of speculation.
The initial public offering (IPO) will sell shares to institutional investors in qualifying countries and to intermediaries in the UK that can help bring in retail clients in the UK, Channel Islands and the Isle of Man.
Esure aims to raise £50m by issuing new shares and selling existing stakes, such as those held by founder and chairman Peter Wood (pictured), Esure management and Tosca Penta Investments.
The £50m will pay off an outstanding loan to Tosca Penta, a special investment firm set up for an Esure buy-out from HBOS Group.
After the flotation, Wood will remain Esure’s largest shareholder.
In a statement, Esure said the IPO would give the firm a “stable corporate platform and long-term ownership structure” for further development. The flotation would also enhance its profile, boost brand recognition and help keep and incentivise staff.
Deutsche Bank, J.P. Morgan Cazenove, Canaccord Genuity and Numis Securities Limited are helping the flotation.
Wood said: “An IPO is a natural next step for a business of Esure’s scale and prospects. Esure’s strength is in the senior management team – led by Stuart Vann – who have unique expertise in building a successful insurance business model, one that enables us to turn many of the challenges that face our industry into real opportunities.”
Esure chief executive officer Stuart Vann said: “This is the right time for Esure’s IPO. Our relentless focus on underwriting, analysis, claims management and operational efficiency has secured a strong operational platform. This, in turn, translates into a strong financial record and a scalable business enabling us to deliver diversified earnings across the group.”
The firm will make a more detailed announcement later today.
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