Conduit Holdings Limited, a new property and casualty (P&C) and specialty reinsurance underwriting business, led by founders Neil Eckert and Trevor Carvey, has completed its initial public offering (IPO) of 164,129,996 shares on the London Stock Exchange (LSE).
Based on the offer price of 500 pence per share, the market capitalisation of Conduit Re will be approximately £826 million (USD 1.1 billion) at the commencement of condition dealings on the Main Market of the LSE.
The new specialty P&C reinsurer announced its intentions to float on the LSE in early November, saying at the time that it expected to raise USD 1.1 billion in gross proceeds.
Subsequently, ratings agency A.M. Best assigned a Preliminary Credit Assessment (PCA) to the company with a Financial Strength Assessment of A- pca (Excellent) and a Long-Term Issuer Credit Assessment of “a-” pca, with a stable outlook.
Commenting on the successful completion of the book building process in relation to the IPO, co-founder Eckert, said: “We are delighted that Conduit’s business proposition has been strongly received by a group of high-quality investors. Business conditions in our targeted reinsurance markets have continued to improve during our journey to IPO and we now move on to the launch of the business with confidence.”
Co-founder Carvey, added: “Conduit is well set for a successful launch and we have been positively received across the reinsurance community. I am excited to lead a legacy free business into these exceptional market conditions.”
The new P&C reinsurance company will have a focus on producing strong risk-adjusted returns from a diversified and focused business plan, and expects to write property, casualty, and specialty lines of reinsurance business.
Jefferies acted as lead left global coordinator to Conduit Holdings Ltd. on its IPO.