Just Retirement has announced plans to float on the London Stock Exchange.
The move follows an emerging trend for more niche players listing after Partnership joined the exchange in June.
Just Retirement’s offer will be worth in excess of £300m, and will comprise the sale of new ordinary shares, as well as a partial sale of existing ordinary shares held by the group’s current principal shareholder, Avallux S.à r.l., members of the management team and other minority shareholders.
In addition to growing group solvency and liquidity, it said the initial public offering would enable the group to “capitalise on continued strong growth in new business” and that it was expecting continued growth in its core markets.
The company is in good financial shape to float: set up in 2004, it has 31 per cent of the market for individually underwritten annuities, a growing area. Its total annuity sales increased by 12.5 per cent between 2012 and 2013, hitting £1.3bn.
Just Retirement’s results for the fourth quarter of 2012/2103 showed the annual total group sales were up 12.9 per cent to a record £1.7bn.
Floating on the stock exchange means Just Retirement will have access to more capital, but it will also open itself up to fluctuating share prices in the face of external factors.
Partnership, a rival firm to Just Retirement, was the last comparable company to float on the stock market. Its share price fell 9.6 per cent during the day following the announcement that the FCA had found, over the course of its thematic review, arrangements between providers and adviser firms that could undermine the purpose of the RDR. When it was confirmed that Partnership was one of the firms, its share price again tumbled 6 per cent.
Overall, however, the firm announced an operating profit of £59.3m for the first half of 2013.
