BC-backed Sabre to raise £213m from IPO

Kenny Wastell
13 November 2017

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BC Partners-backed motor insurance underwriter Sabre Insurance Group has announced its intention to float on the London stock exchange.

The IPO is expected to raise total proceeds of around £213m, through a mix of new and existing shares. Around £206m will be used to acquire shares owned by BC Partners, Angus Ball and Keith Morris.

All additional fresh capital generated from the listing will be used to pay commissions, fees and expenses related to the process.

The proposed listing comes four years after BC (which also owns Acuris, the parent company of unquote") acquired the company in a deal understood to be valued at £240m, with capital drawn from the €6.5bn BC European Capital IX fund. It is understood the GP will retain a significant stake in Sabre following the listing.

Headquartered in Dorking, Surrey, Sabre was founded in 1982 and has a headcount of 150. The business distributes policies through third parties and its own brands, Go Girl, Insure2Drive and Drive Smart, with the latter accounting for 30% of gross written premiums (GWP) in 2016.

Sabre generated GWP of £197m in 2016, a compound annual growth rate of 11.3% from 2006 to 2016, according to a statement. It generated adjusted profit after tax of £53.9m in the same year, up from £37.1m in 2015 and £48.9m in 2014.

Under the GP's tenure, the business introduced a management team led by CEO Geoff Carter and chief financial officer Adam Westwood to take over from the original founder owners. It also invested in product development and bolted on Binomial Group in 2014.

Admission is scheduled to take place in December 2017; shares owned by BC Partners and other shareholders will be subject to customary lock-up arrangements. The listing also includes a 10% overallotment option.

Barclays Bank and Numis Securities are acting as joint global coordinators, joint bookrunners and joint sponsors in the listing, while Joh Berenberg & Co and Peel Hunt are acting as co-lead managers. Evercore Partners is acting as financial adviser to Sabre.