Auckland-based specialty insurance and reinsurance group CBL Corporation has registered its product disclosure statement with regulators as it prepares for listing in New Zealand and Australia.

Earlier this month CBL announced its acquisition of Assetinsure, the largest surety bond insurer in Australia, which is due to settle next month.

An initial public offering (IPO) of CBL’s ordinary shares has been made to institutional investors in New Zealand, Australia and other countries, and to retail investors in New Zealand.

The offer is expected to raise $NZ123-$NZ132 million ($111.54-$119.7 million), based on a price of $NZ1.45-$NZ1.85 ($1.68-$1.31) per share and implied market capitalisation of $NZ324-$NZ389 million ($293.8-$352.74 million).

CBL Chairman Sir John Wells says listing will increase CBL’s profile and broaden its investor base. Money raised in the IPO will fund growth, including the Assetinsure acquisition, and increase regulatory capital capacity.

“CBL has a track record of successfully growing its business by focusing on profitable, non-traditional insurance lines in specific markets,” he said. “In 2000, with one employee, the group wrote $NZ2 million ($1.81 million) in gross premium revenue.

“Today CBL employs more than 100 staff in eight international offices, writing business in 25 countries on four continents, and is forecasting gross premium revenue in excess of $NZ330 million ($299.24 million) this year on a pro-forma basis.

“Our continued growth in both revenue and operating profit is testament to the strength of the international network we have built up.

“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.”

Assetinsure CEO Gregor Pfitzer previously told insuranceNEWS.com.au CBL’s listing will bring “significant advantages”. The company, which has offices in Sydney, Perth and Brisbane, will retain its brand and staffing structure.

See earlier story