Run-off service provider expects capital raise of £31m
Randall & Quilter, the run-off management service provider and acquirer of solvent insurance companies in run-off, has announced its admission to AIM and the commencement of unconditional dealings in its shares.
The company has a total capital raise of £31m, creating a free float of 45%, comprising of a placing of £20m of new ordinary shares to raise approximately £17.1m (net of expenses) for the company and a placing of a further £11m ordinary shares on behalf of certain existing shareholders.
The market capitalisation on admission will be £69.9m ($142m) at the placing price of 125p per share.
The proceeds from the placing of new ordinary shares will be utilised initially to reduce bank debt and to develop the group, by acquisition of further non-life insurance companies in run-off.
In addition, the group intends to expand into new business areas and is seeking to establish a specialist run-off reinsurance company in Bermuda to enable more efficient use of capital across the goup.
Commenting on today's announcement, Ken Randall, chairman and chief executive officer of Randall & Quilter, said:
“A successful placing and admission amidst turbulent market conditions is an endorsement of the company’s quality, following recent recognition by peers as a leader in the run-off market, which the Directors believe to be very substantial and still immature. Admission gives us access to capital to exploit that potential.”