Price range set at between 160p and 195p for between 25% and 33% of the company

Paul Geddes, Direct Line Group

Direct Line Group has priced its initial public offering (IPO) at between 160p and 195p a share, valuing the company at £2.663bn.

The valuation represents the mid-point of the established price range. The final pricing is expected to be announced on or around 11 October. Conditional trading on the London Stock Exchange is expected to begin that day, with unconditional trading starting on or around 16 October.

The IPO’s expected size is between 375 million and 500 million shares, representing between 25% and 33% of Direct Line Group. The minimum amount of the company that could be floated was 25%.

The float includes an over-allotment option of up to 15% of the aggregate number of shares on offer.

The IPO prospectus will be published today.

Direct Line Group chief executive Paul Geddes said: “Today’s announcement reflects the level of investor interest that has been shown at this stage of the transaction, which we believe underlines the potential that exists in Direct Line Group.

“Our people have worked hard in recent years to transform the business in order to take advantage of our distribution, scale and market-leading brands. Our work to maximise these advantages is by no means complete and we have a clear strategy that spans distribution, pricing, claims and operational efficiency.”

He added: “Direct Line Group’s initial public offering is another exciting step in the transformation of the business, and we look forward to welcoming new investors. We will continue with our aim of providing customers with excellent products and service levels, while seeking to deliver sustainable returns for our shareholders, targeting a 15% return on tangible equity from ongoing operations.”

 

 

 

 

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