The founder of a “quirky” motor insurer is set to cash in £30m of shares as the firm completes one of the year’s biggest London listings.
Sabre Insurance today announced details of an initial public offering (IPO) that values the firm at up to £600m.
Founder Angus Ball is in line for a huge cash windfall from his near-20 per cent shareholding in the Dorking-based firm, which is aiming to raise £206m from the float.
Ball's share of the float proceeds is understood to be in the region of £30m. His remaining shareholding would be in worth around a further £75m if the stock market values Sabre at the top end of its range.
Sabre specialises in writing policies for “non-standard” drivers – those unable to source insurance from major insurers. The firm’s brands include Insure 2 Drive and Go Girl and it believes there are around 3m UK drivers currently being shunned by the best-known insurance names.
Current boss Geoff Carter told City A.M. earlier this month Sabre targets customers with “a quirky feature that means major insurers are more nervous about providing prices to them”.
The IPO will see Ball shoot up the rankings of the UK’s richest individuals. Earlier this year he was ranked as Britain's 607th wealthiest person – but this assumed Sabre was worth half of its latest valuation.
Ball and co-founder Keith Morris bought Sabre's predecessor firm from Norwich Union for £13.5m in 2002. In 2005, they sold broker division BDML to Capita Insurance in a deal believed to be worth £35m, rebranding the firm Sabre.
The pair then sold a 78 per cent stake to private equity firm BC Partners in 2013 for £240m.