esure to be valued at 1.15bn pounds in stock market debut

UK online insurance venture esure's initial public offering (IPO) in London later this month will be the biggest stock-market debut so far this year, valuing the company at around 1.15bn pounds.

UK online insurance venture esure's initial public offering (IPO) in London later this month will be the biggest stock-market debut so far this year, valuing the company at around 1.15bn pounds.

esure, the motor and home insurer founded by its Chairman and insurance tycoon Peter Wood, on Friday set an indicative price range for the IPO at 240-310p per share and said it plans to sell as much as 50% of its share capital on March 22nd.

The firm said in a press release that it is planning to raise around £50m in proceeds from the sale which will be used to repay its outstanding debt.

Its expected market capitalisation on its debut is around £1,149m, based on the mid-point of the indicator price range, meaning that the company will be eligible for inclusion in the second-tier FTSE 250 index.

The company, which had 1.25m in-force motor policies and 0.5m in-force home policies at the end of 2012, was made famous by the late director Michael Winner who appeared in its TV adverts with the catchphrase "Calm down dear!"

"We have worked hard for many years to make esure a business that can compete at the highest level with confidence. Today is a milestone reached through the enormous hard work by the esure board, executive team and staff," Wood said.

"We live and breathe insurance at esure and look forward to bringing that knowledge, commitment and focus to bear as a premium listed company."

esure also owns a 50% stake in the well-known insurance price comparison website Gocompare.com.

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020