Hot on Tawa’s heels, Randall & Quilter will IPO

Randall & Quilter Investment Holdings has announced it intends to seek admission of its entire issued and to be issued ordinary share capital to trading on AIM.

The market capitalisation of the Company at Admission will be $142 million.

£20m of new ordinary shares are being issued by way of a placing to raise approximately £17.1m (net of expenses) for the company and a further £11m of ordinary shares are being placed on behalf of certain existing shareholders.

Randall & Quilter is the holding company for a group of companies which operate in the non-life run-off insurance sector. The global non-life run-off market is estimated to have over $400bn in liabilities.

The Placing, for which Numis Securities Limited is bookrunner and joint broker with Noble & Company Limited, is expected to raise £17.1m (net of expenses) for the group.

These funds will enable it to repay bank debt and pursue its strategic development, both by acquisition of non-life insurance companies in run-off and by the continued development of its innovative business areas such as the Liquidity Management Division. Further, the Directors believe that Admission will be beneficial for the Group, as it:

• Will enable the Group to use equity as a currency for future acquisitions and to conduct secondary fundraisings through the placing of further equity

• Is expected to enhance the Group’s credibility in the market and increase awareness of its brand

• Will provide further incentives to both existing and prospective employees

• Will enhance the credibility and profile of the Group in its target markets.

Commenting on today's announcement, Ken Randall, chairman and chief executive officer of Randall & Quilter Investment Holdings plc, said: “Randall & Quilter has been recognised by its peers as a leader in a market which we believe to be very substantial and immature. The Company’s reputation and track record combined with its investment in talent and systems means it has an excellent platform from which to grow. The Company needs capital to exploit its potential and by sourcing that, the intended Placing and Admission will be another big step forward.”