Initial signs were not good for PRI Group's floatation on the Alternative Investment Market, Aim, ye...
Initial signs were not good for PRI Group's floatation on the Alternative Investment Market, Aim, yesterday, but shares rallied 8p to 115p on admission, raising £131m for acquisitions to build the business of providing liability insurance to professionals.
PRI's business model rests on forecasts that professionals in areas such as healthcare and legal service will be subject to increasingly costly litigation against themselves as individuals as regulations covering issues such as medical malpractice shift insurance risk away from organisations to the individuals involved.
The company now has the cash to go out and buy an insurance company to put its plan into practice.
Judging by the share price gain on a day when global markets fell significantly in the wake of another accounting scandal, investors feel that the plan has a solid future.
The successful float makes it the biggest offering to get away on Aim so far, and cements the market's position as a source of capital for funding new businesses.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till