(Alliance News) - Reinsurer Conduit Holdings Ltd on Wednesday began trading on London's Main Market following its GBP826 million float.
Based on an offer price of 500 pence per share, the company's market capitalisation on admission was GBP826 million. That will make it the third largest IPO in London so far in 2020, after THG Holdings PLC and Calisen PLC.
The offer comprised of 164.1 million shares, Conduit explained. Shares were trading at 526.1p on Wednesday morning in London.
"We are delighted that Conduit's business proposition has been strongly received by a group of high-quality investors. Business conditions in our targeted reinsurance markets have continued to improve during our journey to IPO and we now move on to the launch of the business with confidence," Co-founder Neil Eckert said.
The money raised will be used to capitalise the company to a level such that its capitalisation will meet the levels required for the purposes of its targeted AM Best rating of A-.
Conduit is a newly established reinsurance underwriting business focused on producing strong risk adjusted returns from a diversified and focused business plan. The business has been formed to capitalise on what Eckert and fellow founders Trevor Carvey believe to be an "exceptional market opportunity". Eckert will be the company's executive chair.
Conduit expects to write reinsurance in the Property, Casualty and Specialty classes.
Jefferies International and Panmure Gordon will act as joint global co-ordinators and joint bookrunners, while Kinmont and GC Securities will act as joint financial advisers.
By Eric Cunha; ericcunha@alliancenews.com
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Conduit Hldg (CRE)