Neil Eckert and Trevor Carvey’s new property and casualty (P&C) and specialty reinsurance underwriting business, Conduit Re, has today confirmed its intentions to proceed with an initial public offering (IPO) and apply for admission of its Shares on the London Stock Exchange (LSE).
The news comes after Conduit’s previous announcement on November 5th, 2020 regarding the publication of a registration document, with the new reinsurer looking to capitalise on an exceptional market opportunity.
Following today’s announcement confirming its intention to float and raise expected gross proceeds of around $1.1 billion, pre-deal investor education will commence and is scheduled to conclude on November 19th, 2020, with admission expected to take place in December of this year.
The company has reiterated that net proceeds from the issuance of new shares will be used to write reinsurance in line with its business model. Additionally, the proceeds will also be leveraged to capitalise Conduit Re to a level such that its capitalisation meets the levels required for its targeted A.M. Best rating of A- (Excellent).
Conduit also explains that, “The IPO is set to comprise an offer of Shares to institutional investors in qualifying jurisdictions (in the UK and elsewhere outside the United States in reliance on Regulation S and in accordance with locally applicable laws and regulations, and in the United States, only to qualified institutional buyers as defined in and pursuant to Rule 144A under the US Securities Act of 1933, as amended (the “Securities Act”), or another exemption from, or transaction not subject to, the registration requirement of the Securities Act).”
As we wrote previously, Conduit Re 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.
