INSURANCE firm CPP will brave choppy IPO waters with a March flotation.
It has not announced how much it plans to raise but City A.M. has learned the firm hopes to issue up to £30m from new shares, valuing it at £450m.
It is believed owner and founder Hamish Ogston will also sell a £150m stake in the company.
It will hope to avoid the embarrassment heaped on a string of high profile firms which have been forced to pull flotations in recent weeks.
Travelport was forced to humiliatingly pull its £2bn flotation, even after slashing its listing price. Merlin followed shortly after, also ditching a proposed £2bn IPO. And fashion retailer New Look made the shock decision to follow suit and scrap its £1.6bn IPO after it became clear it would not reach its valuation for the firm.
CPP says it will use the cash to fund new product ranges and further overseas expansion, as well as clear some of its £49m debt.
CPP offers services including cancelling and reordering lost credit cards and providing emergency cash and accommodation.
It has over 10m policy holders worth in the region of £30 each. It offers services across Europe and has recently moved into markets including India and Mexico. Around 30 per cent of its revenue comes from abroad and this will grow as it attempts to enter the Chinese market. Many of its policies are sold through high street banks including HSBC, RBS and Barclays. CPP’s total revenues and EBITDA last year were £292m and £49.5m respectively.
Chief executive Eric Woolley said: “Recent IPO failures cross your mind but we believe this is the right time for CPP to float. The market wants to see firms with low debt and high growth potential and we have both.”