Insurance claims handler, The Claims People Group, has raised around £1m through share placings ahead of its quotation on the Alternative Investment Market (Aim) later this month.
A public share offer to raise a further £600,000 opened on Tuesday (October 3), with trading on Aim expecting to start on October 24.
With shares being offered at 8p each, the company will be capitalised at £4.53m. The shares will represent 35.3% of the company's enlarged issued-share capital.
The Claims People was orignally set up by a team of executives from the loss adjustment sector, a market which has no single dominant player, though six companies deal with most the market's business.
The Claims People Group will specialise in the personal lines sector, which the directors estimate to be worth between £200m and £215m. It plans to use business-to-business ecommerce and online customer interfaces to reduce costs and speed up the process of claim servicing for leading insurers in this sector.
The company also plans to extend its services to approved repairers and replacement goods suppliers, a market which, combined with the claims market expenditure, is reckoned to be in the order of £1.8bn. It says it will also extend its web portal to appeal directly to policyholders.
Nominated adviser to the flotation is Grant Thornton. The broker is Hoodless, Brennan & Partners.