Heritage Underwriting Agency has announced its intention to float on the Alternative Investment Market (AIM).
Heritage said it will take the opportunity of the IPO to raise new capital in order to support a planned growth in underwriting (increasing managed capacity from £230m to approximately £265m), capitalise on the favourable market conditions brought about by the 2005 hurricane season, and to support a new team in underwriting personal accident risks.
The directors are seeking to raise up to £18m, before expenses, through the fundraising, of which £15m has been conditionally raised through the placing.
It is expected that dealings in the stock will commence on 1 August 2006.
Richard Pexton, chief executive of Heritage, said: "Our IPO is a tremendous opportunity to raise new capital. Shareholders will benefit from favourable trading conditions, especially in our property book, through our planned increase in underwriting capacity. This is a good move for the company, our employees, existing and new shareholders and all our customers.”
