ReAssure confirms intention to float
ReAssure has confirmed its intention to float on the stock market, allowing Swiss Re to cash in some of its stake in the closed life book company.
The company said it expected the initial public offering to happen in July and that after the sale it would have a free float of at least 25% of its shares. Analysts value the business, which has £68.7bn of assets under management, at about £3.5bn.
The offer will be made up entirely of existing shares owned by Swiss Re, which will reduce its stake from 75% to about 50%. ReAssure will not receive any money from the IPO.
ReAssure said becoming a public company would give it access to future capital and release it from constraints imposed by Swiss Re's ownership. It will also allow Swiss Re to realise part of its investment.
The company ended months of speculation on 7 June when it announced its intention to float. ReAssure hired Mark Hodges, who ran Centrica's British Gas business, as chief executive in December to prepare for the flotation.
The indicative price range and maximum number of shares will be published in the IPO prospectus with the final offer price decided after a book-build.