CBL plans to raise as much as $132M in share sale, list on ASX, NZX
By Tina Morrison
Sept. 7 (BusinessDesk) - 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 next month.
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 Sept. 17, with the shares expected to start trading Oct. 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 8 percent to $19.4 million on gross written premiums of $242 million. It expects pro-forma net profit to rise 34 percent in 2015 to $26 million on gross written premium of $335 million, and 2016 net profit to rise 55 percent to $40.4 million on gross written premium of $397 million.
CBL's existing major shareholders and senior management intend to sell as much as 15 percent of their shares. The offer will include a priority pool for CBL employees and close business associates.
The company says the offer gives it an implied capitalisation of between $324 million to $389 million.