Valuation will make insurer eligible for FTSE 250
Personal lines insurer Esure has priced its initial public offering (IPO) at 290p a share, valuing the company at £1.2bn.
This is more than the £1.1bn the company was rumoured to be seeking, and will make it eligible for entry into the FTSE 250.
Conditional trading in the shares has opened today.
The IPO will see Esure chairman Peter Wood (pictured) own just under 40% of share capital, with the other directors of the company owning approximately 1%.
The flotation comprises 17.2 million new shares and 191.2 million existing shares. The new share element of the IPO is expected to raise £50m for Esure, which it intends to use to pay off debt.
Wood said: “Today’s pricing is a ringing endorsement of Esure’s strengths and future prospects and we welcome all of our new shareholders as co-investors in the next exciting phase of our development. As a premium listed company, Esure will have the right corporate platform for development, and it is our task to maximise the opportunities that we see ahead of us for the mutual benefit of all our shareholders.”
Chief executive Stuart Vann said he wanted to reward the new shareholders for their investment in the company. “The strong reception for our offer is a reflection of investor appetite for differentiated, high quality exposure to the UK insurance sector,” he said. “Looking ahead, our priority is to reward the trust placed in us by our new shareholders as we continue to drive forward our strategy for profitable growth through innovation, efficiency and top quality customer service.”
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