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Cover-More reports strong interest in IPO

Cover-More CEO Peter Edwards says meetings with potential investors have revealed “strong interest” in the travel insurer’s initial public offering.

High revenue and earnings growth, an ability to “scale up” quickly, geographic spread and a dominant position in Australia have prompted interest “across the parties we have communicated with”, he told a briefing on the float.

“Travel insurance is a resilient industry, which is also growing strongly.”

He dismissed concerns that comparator iSelect’s disappointing market performance could affect demand for Cover-More shares.

Cover-More plans to raise $521.2 million in an offer priced at $2 a share, according to a prospectus released last week.

Trading will start on the Australian Securities Exchange on December 19, amid a flurry of other listings before the end of the year.

Cover-More is the third insurance-related business to list since mid-year. Steadfast is trading above its issue price of $1.15, while iSelect remains well below its IPO price of $1.85.