Goldman Sachs-backed Hastings to raise £180m in London IPO

Mikkel Stern-Peltz
15 September 2015

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Goldman Sachs-backed, UK-based insurance group Hastings intends to raise ТЃ180m by listing on the London Stock Exchange in October.

Having acquired 50% of the group in October 2013 in a deal that valued Hastings at £700m, Goldman Sachs Asset Management plans to remain the largest shareholder after the IPO.

The £180m Hastings hopes to raise from the offer will be used to redeem part of the group's outstanding debt. Hastings was refinanced following Goldman Sachs' investment, launching a £416.5m senior secured bond on the Irish stock exchange.

The IPO proceeds will cover redemption of some of the notes, while the remainder will be redeemed at a later point through new bank facilities arranged by Hastings in anticipation of upcoming Solvency II capital requirements.

On admission, Hastings will have a free float of at least 25%.

Goldman will likely enter into a 180-day lock-up period, while management will agree to the customary 365-day agreement.

Credit Suisse Securities is acting as joint global coordinator, joint bookrunner and sole sponsor on the IPO. Goldman Sachs International is acting as joint global coordinator and joint bookrunner, while Barclays and HSBC are acting as joint bookrunners.

Stifel Nicolaus is acting as senior lead manager, and Peel Hunt is lead manager.

East Sussex-based Hastings is a general insurance provider with particular activity in the UK motor insurance market. The group has 1.88 million customer policies in the UK and generated an operating profit of £105.7m last year.