CBL shares climb 12% on NZX debut

CBL shares climb 12% on NZX debut

Oct. 12 (BusinessDesk) - CBL Corp shares rose 12 percent on their NZX debut as the credit surety and financial risk insurer raised $90 million of new capital in an initial public offering to bolster its capital base and help fund aspirations to expand.

The shares first traded at $1.74 giving the company an implied market capitalisation of $382.3 million and up from the $1.55 offer price. The Auckland-based firm raised $125 million in total from the sale, of which $35 million will go to existing shareholders selling into the offer. Of the remainder, $32.7 million will pay for the acquisition of Australian insurer Assetinsure, up to $20 million will increase regulatory capital, and $28.9 million will be put aside to provide headroom for organic growth or other potential purchases. About $8.4 million will be spent on offer costs.

CBL, which began as Contractors Bonding Ltd in 1973, derives almost 98 percent of its revenue from international operations. The company said it expects its dual listing on the NZX and ASX to increase its profile, broaden its investor base, increase regulatory capital capacity, and help fund growth.

The company's 2014 net profit rose 8 percent to $19.4 million on gross written premiums of $242 million. It is forecasting gross written premiums of $335 million this year.

(BusinessDesk)

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