Sabre In­sur­ance in flota­tion plans to raise up to £213m

Yorkshire Post - Business - - CAPITAL MARKETS -

SABRE IN­SUR­ANCE has an­nounced plans for a Lon­don flota­tion that is ex­pected to raise up to £213m, valu­ing the UK firm at around £600m.

The De­cem­ber Ini­tial Pub­lic Of­fer­ing (IPO) will end five years un­der the own­er­ship of pri­vate eq­uity group BC part­ners, which ac­quired Sabre – known for prod­ucts in­clud­ing Drive Smart, In­sure 2 Drive and Go Girl – for £240m in 2013.

It is un­der­stood that the list­ing could value the firm at up to £600m.

The com­pany was con­sid­er­ing a num­ber of op­tions in­clud­ing a pri­vate sale, but chief ex­ec­u­tive Geoff Carter con­firmed that flota­tion was prefer­able, as it would safe­guard the firm from a po­ten­tial over­haul un­der new own­ers.

“We’ve had quite a good look at var­i­ous op­tions. The rea­son we like the IPO, and it’s our pre­ferred op­tion, is we have a very suc­cess­ful strat­egy and this seems to be to us the best way of con­tin­u­ing to fol­low and evolve that strat­egy.”

But he as­sured that the de­ci­sion to float was not for lack of in­ter­est from pri­vate buy­ers.

“We had plenty of peo­ple who were ex­tremely in­ter­ested, our view is that the IPO is the best way go­ing for­ward.”

The busi­ness has ex­pe­ri­enced growth of around 10 per cent in re­cent years, and Mr Carter said the com­pany is set for “high sin­gle digit growth” go­ing for­ward.

The com­pany gen­er­ated gross writ­ten pre­mi­ums of £197m in the year De­cem­ber 1, 2016, and had an av­er­age of 325,000 poli­cies in force over that pe­riod.

The IPO comes as a sur­prise af­ter at least two firms de­cided to hold fire on their re­spec­tive list­ings ear­lier this month amid high mar­ket un­cer­tainty.

TV and mo­bile in­fra­struc­ture firm Arqiva “post­poned” plans for a £6bn list­ing at the start of Novem­ber, say­ing that it would re­visit the flota­tion “once IPO mar­ket con­di­tions im­prove”.

Had it gone ahead, it would have been one of the big­gest list­ings this year. Bakka­vor, the UK’s big­gest maker of hum­mus, last week said it was press­ing ahead with its flota­tion, which came just days af­ter say­ing that the trans­ac­tion would not be in the best in­ter­est of share­hold­ers given volatil­ity in the IPO mar­ket.

It is un­der­stood that the group U-turned on its de­ci­sion af­ter dis­cus­sions with in­vestors.

GEOFF CARTER:

‘Our view is that the IPO is the best way go­ing for­ward.’

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.