Go Compare splits from Esure as it prepares for £450m market float

GO COMPARE will float on the stock market in a listing that will be worth up to £450m.

The price comparison website – known for its TV adverts featuring moustachioed opera singer Gio Compario – has been owned by Esure since March 2015, when it bought the 50pc stake it did not already own for £95m. That deal suggested Go Compare was worth around £190m, meaning it has effectively doubled in value in 18 months.

The demerger is likely to generate huge fees for investment bankers, lawyers and spin doctors. No breakdown has yet been published but Esure is expecting costs of £19m. The split will see existing shareholders gain stock in the new company, with more details due to be published in October. Go Compare will be led by Matthew Crummack, a former boss of holiday firm Lastminute.com who was appointed in June.

Go Compare will be the second price comparison site on the stock market – its £1.6bn rival Money Supermarket listed in 2007.

Compare The Market owner BGL is also expected to join them as the industry becomes more mature and looks for opportunities to grow abroad.

Esure is likely to focus on car insurance, which is its core business, after the sale. It made a £37.7m profit in the first half of 2016, with 2.1m policies in force.

Esure shares rose 1.9pc or 5.4p to 292.6p.