Quindell raises £200m from selling shares

Quindell Portfolio has raised £200m from selling 1.3 billion shares.

The outsourcing and software giant plans to use the proceeds to fund new contracts, which are expected to be entered into in the coming months.

Quindell said the placing of the shares as 16 pence each, which was carried out by Cenkos Securities plc and investment bank Canaccord Genuity Limited, saw strong demand from both existing and new institutional investors and the directors.

And the firm added it will enable the group to capitalise on additional new business opportunities, further build its market share and support its goal of becoming the leading supplier of technology-based insurance and telematics solutions globally.

In an announcement today Quindell’s founder and executive chairman Rob Terry said: “The Board would like to take this opportunity to thank its staff who have delivered significant profitable growth for Quindell while building a platform that we believe will underpin Quindell’s organic growth for years to come. 

“This has been achieved while continuing to drive down the cost of claims for the insurance industry and by still providing exceptional levels of ancillary income to our partners, which ensures the long-term sustainability of our model.

“The Placing was materially oversubscribed and priced at 16p per share, representing a premium to the current market price. The level of support demonstrates a significant vote of confidence in our business model and prospects.”