Scoop has an Ethical Paywall
License needed for work use Register

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

CBL shares climb 12% on NZX debut

CBL shares climb 12% on NZX debut


By Suze Metherell

Oct. 12 (BusinessDesk) - CBL Corp shares rose 12 percent on their NZX debut as the credit surety and financial risk insurer raised $90 million of new capital in an initial public offering to bolster its capital base and help fund aspirations to expand.

The shares first traded at $1.74 giving the company an implied market capitalisation of $382.3 million and up from the $1.55 offer price. The Auckland-based firm raised $125 million in total from the sale, of which $35 million will go to existing shareholders selling into the offer. Of the remainder, $32.7 million will pay for the acquisition of Australian insurer Assetinsure, up to $20 million will increase regulatory capital, and $28.9 million will be put aside to provide headroom for organic growth or other potential purchases. About $8.4 million will be spent on offer costs.

CBL, which began as Contractors Bonding Ltd in 1973, derives almost 98 percent of its revenue from international operations. The company said it expects its dual listing on the NZX and ASX to increase its profile, broaden its investor base, increase regulatory capital capacity, and help fund growth.

The company's 2014 net profit rose 8 percent to $19.4 million on gross written premiums of $242 million. It is forecasting gross written premiums of $335 million this year.

(BusinessDesk)

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
FMA: MAS To Pay $2.1M Penalty For Making False Representations

Following proceedings brought by the FMA, MAS has been ordered to pay a $2.1M penalty for making false and/or misleading representations to some customers. MAS admitted failing to correctly apply multi-policy discounts and no claims bonus discounts to some customers, failing to correctly apply inflation adjustments on some customer policies, and miscalculating benefit payments. More

IAG: Call On New Government To Prioritise Flood Resilience

The economic toll of our summer of storms continues to mount, with insurance payouts now topping $1B, second only to the Christchurch earthquakes. AMI, State, & NZI have released the latest Wild Weather Tracker, which reveals 51,000 claims for the North Island floods & Cyclone Gabrielle, of which 99% (motor), 97% (contents), and 93% (home) of claims have now been settled. More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.