Underwriter seeks capital through share offer
Cash-strapped Ockham Holdings is raising £23m through a share placing to fund more motor business.
A further £2m is being raised to fund the day-to-day running of the organisation.
The money will be obtained through a share placing, an open offer of 72,469,626 new ordinary shares at 34.5p per share.
Ockham announced a £10m pre-tax profit for the year ended 31 December 2001, compared to a £8.8m pre-tax loss the previous year.
Chief executive Lord Poole said: "We are a bit strapped for cash."
He explained although Ockham has £300m of investment funds in insurance operations, of which £250m belongs to the company, it "can't divvy it up".
The cash raised will enable subsidiary Highway Insurance Company to underwrite more motor business.
"In the last three years, rates are up by 64% and they have continued to rise so far this year," said Lord Poole. "If the price of a policy rises, the solvency requirements mean you can write fewer policies.
"Without this capital injection, the business would be standing still."
The placing needs to be approved by shareholders at an extraordinary general meeting on 9 April. The money can then be raised by mid-April.
Lord Poole said further funds may be required if New Millennium Technologies fails to make a profit this year.
Since 1998, Ockham has invested just under £10m in the creation of an administration and quotation system for brokers.
He said: "We do not have money set aside to contribute, so Ockham will have to make choices on how to use its funds."
Lord Poole said he would consider selling the company and had received a number of informal approaches.
"If someone wants to make a bid, I will get the best possible price for shareholders," he said.
