Successful listing for CBL

13 October 2015

Successful listing for CBL

Shares in Auckland-based international credit surety and financial risk insurer CBL Corporation (CBL) are now being traded on the New Zealand and Australian stock exchanges following an IPO which raised $NZ125 million, money which will largely be used to fund the company’s ongoing global growth.

CBL Managing Director Peter Harris said: “We are delighted with the depth, spread and quality of the investors we attracted, with particular support from investors in New Zealand, Australia, and Hong Kong. Equally pleasing was the strong demand for shares from our employees and key business associates around the world, which we see as a ringing endorsement for the company’s prospects and performance.”

Mr Harris said that new CBL shareholders were investing in a company with solid fundamentals, a sound track record, and significant growth opportunities.

"CBL is looking forward to taking full advantage of the opportunities now available to the company," said Mr Harris.

Mr Harris said about three-quarters of the new money raised by the float would be used to fund growth opportunities, including the recent acquisition of Australian insurer Assetinsure.

“The balance will largely be put towards increasing our regulatory capital and supporting continued organic growth.”

CBL Chairman Sir John Wells said the dual-listing was a significant step in the ongoing evolution of CBL.

“CBL has successfully pursued an international strategy of strong growth by focusing on profitable, non-traditional insurance lines in specific markets. Our new capital structure will allow us to do that even more effectively.”

In welcoming CBL to the NZX, NZX CEO Tim Bennett noted the listing was the first under the new securities law framework.

“We’re delighted to welcome CBL Insurance to the NZX Main Board. The listing is the first to happen under the new Financial Markets Conduct Act, which continues to drive growth and development of New Zealand’s capital markets,” said Mr Bennett.

CBL will trade under tickers CBL.NZX and CBL.ASX. CBL’s Offer price of $NZ1.55 implies a market capitalisation of $NZ340.5m, reflecting a FY2016F P/E multiple of 8.4 and an implied gross dividend yield of 4.9 percent for the 12 month forecast period to 31 December 2016.

Joint lead managers to the Offer were UBS and Forsyth Barr. CBL was also advised by Bancorp and Minter Ellison Rudd Watts.

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