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new float - bbc website

  1. Merkin

    118 posts.
    This article from the BBC business website.

    This company has taken a bollocking over here in the UK recently as they have cut their dividends to shareholders and had to pay fines relating to misleading advertisements over mortgage products.

    It will be interesteing to see how the company goes as insurance companies with Australian businesses seem to have come off their lows (QBE and IAG). Plus the timing of the float could offer some value as an insurance company floating in this environment would have to be attractive for the big boys...

    Cheers

    Merkin

    "Royal & Sun Alliance in $1bn float


    Royal and Sun Alliance plans to raise up to A$2.1bn ($1.3bn, £824m) from a float of its Australia and New Zealand units.
    The insurance giant is braving falling share markets to launch what will be the biggest Initial Public Offering (IPO) in the world this year.

    The shares in Promina Ltd will be priced between A$1.50 and $2.

    Promina is the third largest general insurer in Australia and the second largest in New Zealand.

    Falling markets

    Royal and Sun Alliance has been forced to seek the listing amid pressure to raise capital and clean up its balance sheet.

    The insurer has been hit by weak stock markets and asbestos-related claims.

    It has lost 75% of its stock market value in the past year, making it the worst performing insurer in the FTSE 100 index of leading shares.

    It has cut up to 12,000 jobs as it struggles to raise cash to pay claims.

    The company's shares lost 2.5p to 69.5p, in a heavily declining market. "

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