Insurer CBL plans to list on stock exchange
By Tina Morrison
CBL Corp, which sells credit surety and financial risk insurance, plans to sell shares to raise as much as $132 million and list on the New Zealand and Australian sharemarkets.
Auckland-based CBL intends to sell shares to institutional investors in New Zealand, Australia and other countries, and to retail investors in New Zealand, at an indicative range of $1.45 to $1.85 apiece, it said in a statement.
A bookbuild to determine the price will take place on September 17, with the shares expected to start trading October 13.
CBL, which began as Contractors Bonding Ltd in 1973, derives almost 98 percent of its revenue from its international operations.
The company expects a listing to increase its profile, broaden its investor base, increase its regulatory capital capacity, and help fund growth, including the acquisition of Australian insurer Assetinsure.
"CBL has a track record of successfully growing its business by focusing on profitable, non-traditional insurance lines in specific markets," said chairman John Wells.
"We have identified several opportunities for further growth and development, and the money we raise from this offer will help us take advantage of those opportunities."
The company's net profit for 2014 rose eight percent to $19.4m on gross written premiums of $242m. It expects pro-forma net profit to rise 34 percent in 2015 to $26m on gross written premium of $335m, and 2016 net profit to rise 55 percent to $40.4m on gross written premium of $397m.
CBL's existing major shareholders and senior management intend to sell as much as 15 percent of their shares.