Sabre Insurance has set the price range for its IPO

Sabre Insurance has set the price range for its initial public offering (IPO) on the London Stock Exchange.

Shares will be offered to institutional investors at between 220 pence and 240 pence each.

That price range would value Sabre’s issued equity at £550m-£600m on its admission to the stock market.

Folowing the IPO, Sabre is expected to have 250 million ordinary shares in issue, with between 33% and 50% traded on the market, with the remainder closely held by current shareholders.

The IPO is expected to raise about £206m, which will be used by the company to buy preference shares issued by Barbados Topco, the current parent company of the group.

The final offer price is expected to be announced on or around 6 December, with conditional dealings in the shares expected to start that day.

Currently, private equity firm BC Partners owns 72% of Sabre, with founder Angus Ball owning a further 19%. BC bought into Sabre in 2013 for £240m.

Earlier this month, Sabre chief executive Geoff Carter told Insurance Times that an IPO was the best option for Sabre.

“We took a long look at all the options,” he said, including sale to a private equity investor, trade sale and a stock market float, “and the IPO was by far the most attractive.”