Partnership Assurance Group, the enhanced annuity specialist, has set its offer price at 385p per share meaning its implied market capitalisation for its initial public offering (IPO) is £1.5bn.
It is expected the group will be eligible for inclusion in the FTSE 250 index from September and conditional dealings on the London Stock Exchange are due to start today at 8am.
Its offer size of £485m, is made up of 93,528,185 existing shares and 32,467,532 new ordinary shares which represent a free float of about 31%. It said its private equity backers Cinven Partners may sell up to an additional 8,899,353 shares, representing up to 15% of the offer. Assuming the over-allotment option is exercised in full, the free float is expected to be 36%.
Immediately following admission to the index, the Cinven Funds will hold 52% of Partnership's share capital (assuming exercise in full of the over-allotment option) and the directors and senior management will hold about 9%.
Partnership Assurance chairman Chris Gibson-Smith said: “This is an important milestone on Partnership’s journey. I welcome our new shareholders to the next stage of our development, as we seek to build on our strong position in this high growth market. We look forward to being listed on the London Stock Exchange and to delivering further value for our customers and our shareholders.”
Partnership Assurance chief executive Steve Groves said: "The appetite for Partnership’s differentiated growth story is reflected in the strong, high quality investor demand our IPO has attracted. I now look forward to executing the next phase of our strategy to expand our reach and market share further as we continue to translate Partnership’s ability to provide a better deal for customers into profitable growth and attractive returns.”
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