Newly-launched reinsurer Conduit Holdings has made a strong start to its time as a listed business after seeing its share value rise above its initial 500 pence offering in its first day of trading.
Conduit was valued at about £826m through its initial offer price, but briefly touched almost 540 pence per share before settling back to 512 pence at the start of morning trading.
The float marks the third biggest IPO in London this year, following THG Holdings and Calisen PLC.
Conduit has been launched to take advantage of what the directors believe to be favourable underwriting conditions across several reinsurance segments, according to its prospectus.
It said it plans to take part in the global reinsurance business across property excess of loss, short tail specialty excess of loss, long tail specialist excess of loss, short tail quota share, casualty excess of loss and casualty quota share.
The business is targeting a dividend payout of 5% to 6% of equity capital as early as next year, it added.
Two large UK investors bought over 10% of the deal each according to Bloomberg, which cited an unnamed person is said was familiar with the matter.
The entire offering was taken up by only 60 funds, it added, the majority of which were long-only strategies. About 20% of the demand came from US mutual funds.
Jefferies Group and Panmure Gordon & Co acted as joint global coordinators and bookrunners for the IPO.
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