CPP shares are launched at Stock Exchange (From York Press)

CPP shares are launched at Stock Exchange

10:38am Saturday 20th March 2010 in

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ONE of York’s biggest employers, CPP Group Plc, has been launched on the Stock Exchange with an offer price of 235p per ordinary share, giving it a market capitalisation of about £396 million.

As reported in The Press earlier this month, the group expects to raise proceeds of £30 million, and the selling shareholders expect to gross £120 million – a total offer size of £150 million gross.

Hamish Ogston, who founded the group in 1980, building it up into an international provider of life-assistance products in 14 countries and with an operating profit of £41.5 million last year, plans to remain the controlling shareholder and be a non-executive director.

Net proceeds from the global offer will be used partly to pay off some the group’s debt of about £48.8million, the remainder of borrowings two years ago when Mr Ogston gave up some of his shares. The international life-assistance business, which employs more than 1,000 people at its headquarters in Holgate Park, and insures credit cards, mobile phones, lost wallets and keys, believes offering its shares publicly will “position the group for its next stage of development”. It is believed that Mr Ogston, 61, will take some cash from the float to invest in his other business and charity interests, but will remain the majority shareholder.

Admission to the Official List of the UK Listing Authority and start of unconditional dealings in the shares is expected to take place from 8am on Wednesday. Chief executive Eric Woolley, said: “We have enjoyed being able to talk to the market about CPP’s growth story and are pleased with the response, as evidenced by the robust demand and new investors we have attracted. We look forward to life as a listed company which will help us to capitalise on the growth opportunities available.”