News Column

Saga Lays Out Price Range For IPO, Eyeing Potential GBP2.5 Billion Valuation

May 8, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Saga PLC Thursday said it expects the price range for its initial public offering to be between 185 pence and 245 pence a share, which is set to give it the largest market capitalisation of any London IPO so far this year at between GBP2.2 billion and GBP2.5 billion.

The insurance provider and travel agent said it intends to use the GBP550 million proceeds to immediately reduce its net debt to around GBP700 million.

The total size of the offer will deliver a free float of between 25% to 50%, it said.

Saga is owned by a consortium of private equity companies, including Charterhouse Capital Partners, CVC Capital Partners, Permira, we well as numerous employees and other institutional investors.

Citigroup Global Markets Ltd, Bank of America Merrill Lynch, Credit Suisse Securities (Europe) Ltd, and Goldman Sachs International are leading the IPO.

JP Morgan Cazenove and UBS Ltd join them as joint bookrunners.

Investec Bank PLC is joint lead manager, while Mizuho International is co-lead manager.

"Everyone at Saga has been delighted by the positive response to the news that Saga intends to IPO. Saga is a classic British brand, offering a unique portfolio of products and services to the over 50s market," said Chief Executive Lance Batchelor in a statement.

Companies are flocking to the public markets amidst warming investor sentiment towards equities, with high-profile names such as Just Eat PLC, Pets at Home Group PLC and Poundland Group PLC already floating earlier this year.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Alliance News

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