esure Group Plc. announced that it has priced its Initial Public Offering at 290 pence per Share. Previously, the company had planned to sell its Initial Public Offering between 240 pence and 310 pence per Share.
The company said that it will sell about 191.18 million existing shares and about 17.24 million newly issued shares through the Offer, representing about 50 per cent of esure's total share capital on Admission.
The implied market capitalisation of the company at the Offer Price is 1.209 million pounds, taking into account the proceeds to be raised by esure through the issue of new Shares pursuant to the Offer, which is expected to make esure eligible for inclusion in the FTSE 250 Index in due course.
In addition, Shares, representing up to 15 per cent of the total number of Shares are also being made available pursuant to an over-allotment option.
J.P. Morgan Securities plc has been granted an over-allotment option, which is exercisable for a period of 30 calendar days from today, by Tosca Penta Investments LP , pursuant to which Tosca Penta Investments LP may sell up to an additional 31.26 million Shares, representing 7.5 per cent of esure's share capital on Admission.
Immediately following Admission, Peter Wood will hold about 30.9 per cent of esure's share capital, Tosca Penta Investments LP will hold approximately 11.6 per cent of esure's share capital and other the Directors, excluding Peter Wood will hold approximately 0.9 per cent in aggregate of esure's share capital.
The company said it expects to raise 50 million pounds from the sale of newly issued Shares through the Offer, which will be applied to repay all outstanding debt on Admission.
The company stated that 22.52 million shares have been allocated to intermediaries for the purpose of satisfying applications by private investors in the UK, the Channel Islands and the Isle of Man to purchase Shares through the Offer. This represents about 10.8 per cent of the total number of Shares comprised in the Offer, excluding Shares that may be over-allotted pursuant to investors pursuant to the stabilisation arrangements.
Admission to the premium listing segment of the Official List and to trading on the Main Market of the London Stock Exchange and commencement of unconditional dealings in the Shares are expected to take place at 8.00 am on 27 March 2013.
Deutsche Bank is acting as Joint Global Co-ordinator and Joint Bookrunner, J.P. Morgan Cazenove is acting as Joint Global Co-ordinator, Joint Bookrunner and Sole Sponsor, and Canaccord Genuity Limited and Numis Securities Limited are acting as Co-Lead Managers.
esure Group plc is a UK-focused personal lines insurer founded in 2000 by Peter Wood, the foremost general insurance entrepreneur in the UK and the Group's Chairman. The Group also owns 50 per cent of top-four UK insurance price comparison website, Gocompare.com.
by RTT Staff Writer
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