Travel insurer Cover-More plans to raise $521.2 million in an initial public offering, according to a prospectus released this afternoon.

A total of 260.6 million shares will be offered at $2 a share, with trading to commence on the Australian Securities Exchange on December 19.

The company will have a total of 317.5 million shares, including shares held by Crescent Capital Partners and management, giving it an indicative market capitalisation of $635 million.

Cover-More has about 40% of the Australian travel insurance market, according to the prospectus.

It also has a growing footprint in Asia including India and China, as well as a presence in Malaysia, Singapore, New Zealand and the UK.

Chairman Michael Alscher says listing will fund an increase in Cover-More’s ownership of its India business to 100% and provide the company with access to capital markets.

“Cover-More has a multi-channel distribution model which is supported by robust scalable technology and reputable partnerships,” he says in a letter to investors. “The board and management are focused on Cover-More achieving continued growth.”

The company’s gross written premium is forecast to rise to $362.7 million in the current financial year from $304.1 million in the 12 months ended June, based on pro-forma data.

Net profit after tax is forecast to increase to $22 million from $16.6 million.

Cover-More was established in 1986, and its listing would be the third insurance-related listing since midyear.

Comparator iSelect debuted on the Australian Securities Exchange in late June, followed by broker group Steadfast in August.

In 2009 Cover-More entered a long-term underwriting arrangement with Munich Re subsidiary Great Lakes for products distributed in Australia, New Zealand and the UK. The tie-up was extended in August for a further five years.