INSURER Just Retirement yesterday became the latest UK company to tap buoyant stock markets after announcing plans to raise £300m in an initial public offering (IPO)
The company, which goes head to head with recently floated insurer Partnership in offering enhanced annuities, will launch a road show in the UK and America in the next couple of weeks to drum up interest in the offering.
The business was previously listed on the junior stock market before being taken private by buyout firm Permira in 2009. Permira will continue to hold a stake in the company for the first six months after the float, before selling down in further tranches.
Just Retirement, which is led by chief executive Rodney Cook, is hoping fund managers looking for high growth stocks will latch onto the company, given it plays in the ever-growing annuity market.
The size of the annuity market is due to rise from £12.8bn this year to £18.7bn in 2016.
“This is a natural step in our evolution. The company is very much bigger – we’ve more than doubled in size in the last three years,” Cook told City A.M.
“As soon as we observed the market improve at the end of last year, we believed it was appropriate to do the preparation. Partnership came to the market and this is a unique sector. That was well received and that gave us added impetus.”
The float is likely to set up a tough battle between Partnership and Just Retirement in winning new customers seeking enhanced annuities. Enhanced annuities are offered to people who have medical conditions. They normally pay out more cash than standard annuities.
ADVISERS JUST RETIREMENT
Deutsche Bank is joint sponsor, joint global co-ordinator and joint bookrunner on the offering alongside Nomura.
Also helping cover the book are Espirito Santo Investment Bank, Keefe Bruyette & Woods and Keefe Bruyette & Woods.
Heading the Deutsche team in its bid to attract investor cash is City grandee James Agnew, chairman of UK corporate broking at the bank. Agnew joined Deutsche Bank in 2002, having previously been at Merrill Lynch.
Agnew headed corporate broking at the grand old institution from 1995 to 2002.
He has over 25 years’ experience as a broker, and currently sits on the Takeover Panel and the London Stock Exchange Primary Markets Group.
At Deutsche Bank, Agnew has advised on the acquisition of Arriva by Deutsche Bahn, Kraft’s acquisition of Cadbury and Old Mutual on its offer for Skandia. In addition, he also helped work with DP World on its offer for P&O and Scottish and Newcastle on the offer by Carlsberg/Heineken.
He has also worked on the National Grid and Wolseley rights issues. He qualified as a chartered accountant with KPMG and is also a non-executive director on the board of oil firm Petroceltic.
Lorcan O’Shea, Deutsche’s UK equity capital markets head is also on the deal.