Esure confirms £1.2bn IPO

INSURER esure this morning priced its IPO at 290p a share, giving it a valuation of £1.2bn.

This marks a price towards the upper end of its original range of 240p to 310p.

The IPO is expected to jettison the insurer, which owns the Sheila’s Wheels brand, into the FTSE 250.

Esure said it would float around 50 per cent of its total share capital on admission. It expects to raise £50m from the sale of new shares to repay debt.

Selling shareholders, including founder and chairman Peter Wood and private equity investor Tosca Penta Investments, will in total receive around £554m from reducing their stakes.

Following esure's market debut on Friday, Wood will remain the company's largest investor with a stake of 30.9 per cent, while Tosca Penta will hold a 11.6 per cent stake.