Reuters – Britain’s Just Retirement , a provider of pensions to retirees with health problems, was valued at 1.1 billion pounds ($1.8 billion) in its London listing on Tuesday.
Just Retirement, backed by private equity group Permira, priced the sale of a 30.5 percent stake at 225 pence per share, the middle of its original 200p to 250p range.
The company, which was listed on the junior Alternative Investment Market before being bought by Permira funds in 2009, raised 300 million pounds from the sale of new shares.
Existing shareholders, including Permira and company management, will bank a total of 43.2 million pounds, which could be increased by 15 percent if an overallotment option, whereby more stock can be sold if there is strong demand, is exercised.
If that option is not exercised, funds managed by Permira will retain a 62.4 percent stake in the company.
Just Retirement’s core business is to offer annuities to retirees with serious health conditions such as heart disease and those who smoke heavily. These annuities pay out a higher income than more conventional products.
The company is also a provider of “lifetime mortgage” products, used by pensioners to supplement retirement income by unlocking some of the value of their homes.
Its sale follows the flotation of its private-equity-backed rival Partnership Assurance, which has seen its shares rise more than 9 percent since its June debut.
Deutsche Bank and Nomura were joint global co-ordinators and joint bookrunners on the sale of Just Retirement, whose shares are due to begin trading at 0800 GMT. ($1 = 0.6261 British pounds) (Reporting by Kylie MacLellan; Editing by Louise Ireland)