ReAssure confirms price range for initial public offering

Life insurance firm ReAssure announced the price range for its initial public offering on Thursday, following its confirmation on 14 June that it was intending to proceed with a float on the London Stock Exchange.

The company said the offer would solely be comprised of existing shares to be sold by Swiss Re ReAssure Midco, a subsidiary of and, at the time of the offer, wholly-owned and controlled indirectly by Swiss Re.

As a result, ReAssure said it would not receive any proceeds from the offer.

It said the price range for the offer had been set at between 280p and 330p per share, implying a market capitalisation on admission of between £2.8bn and £3.3bn.

The offer was expected to deliver a free float of 26% of the issued share capital prior to the exercise of any of the over-allotment option, ReAssure said.

Shares representing up to 15% of the offer were also being made available by the selling shareholder to UBS as stabilisation manager, under over-allotment arrangements.

“It is expected that, following admission, the company will be eligible for inclusion in the FTSE UK indices,” the ReAssure board said in its statement.

“The company has engaged Credit Suisse International to act as sole sponsor, Credit Suisse Securities Europe, Morgan Stanley & Co International plc and UBS AG London Branch to act as joint global coordinators and joint bookrunners.

“The company has also engaged BNP Paribas and HSBC Bank as joint bookrunners.”