esure new issue - worth a punt?

Browntrout_2

esure, the motor and home insurer founded by its Chairman and insurance tycoon Peter Wood, on Friday set an indicative price range for the IPO at 240-310p per share and said it plans to sell as much as 50% of its share capital on March 22nd.

The firm said in a press release that it is planning to raise around £50m in proceeds from the sale which will be used to repay its outstanding debt.

Its expected market capitalisation on its debut is around £1,149m, based on the mid-point of the indicator price range, meaning that the company will be eligible for inclusion in the second-tier FTSE 250 index.

The company, which had 1.25m in-force motor policies and 0.5m in-force home policies at the end of 2012, was made famous by the late director Michael Winner who appeared in its TV adverts with the catchphrase "Calm down dear!"

http://www.hl.co.uk/shares/ipos-and-new-issues/new-share-issues/esure-to-be-valued-at-1.15bn-pounds-in-stock-market-debut

I am going in as per Direct Line float, looking for a quick 10%

innovate

I couldn't possibly invest in esure - - - would be a constant reminder of that godamn awful ad that made me want to do with M Winner what Stephen Hawkins does these days with that other dreadful ad .

xmodz

i dont think it will go up 10% like Direct line to be honest.

Wobblydeb

How is the price determined?

Biggles

xmodz wrote: »

i dont think it will go up 10% like Direct line to be honest.

Direct Line went up as much as 28%, very nice. I should be satisfied with half what I made on that.

wesleyad

innovate wrote: »

I couldn't possibly invest in esure - - - would be a constant reminder of that godamn awful ad that made me want to do with M Winner what Stephen Hawkins does these days with that other dreadful ad .

Add to that they own half stake in GoCompare.. Go Compare!

DJBenson

I got the email from X-O.co.uk with the offer - thought it might be worth a punt for a spare £1k

srcandas

I'll give it a little punt. Doesn't look like they are being too greedy.

And with so much cash looking for a home.

Don't have any insurance after considering and rejecting Aviva so fills a gap - but if I see 15% I'll be away :cool:

sabretoothtigger

Whats the financials. DL looked cheap, it was also a forced sale. DL div is well covered I think

gozomark

what will you do if it doesn't go up 10% ?

srcandas

sabretoothtigger wrote: »

Whats the financials. DL looked cheap, it was also a forced sale. DL div is well covered I think

Sabre that's true but equally I don't think this looks expensive.

And it has a UK focus and has shown strong growth over the last 4 years. Has a strong over 30 and female client bias. Promises a strong divi paying strategy . And is online focused in the extreme (with it's 'Compare' interest).

It's not what you'd call cheap but the timing looks neat to me. Following DL which showed a profit, end of ISA year, market high.

Wouldn't put the wife on the streets to get extra money in on it but it's in punt territory