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

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021