Sovereign shares $2.25 each
Sovereign Ltd is on the board after completing its share float.
Thursday, March 26th 1998, 12:00AM
Sovereign has raised $37.5 million through its share float and plans to use this money to support its growth objectives, which includes two investments currently under consideration.Joint managing director Ian Hendry says the offer closed successfully and all 22.4 million shares offered have been subscribed for at a final price of $2.25 a share which was the bottom of its range.
Prior to the float the company said its appraisal value was estimated to be $314 million, or $3.01 a share. Using the issue price of $2.25 the company is valued at $234.7 million.
"The directors were particularly pleased with the significant retail demand and the strong support from overseas institutions in the institutional tender process," Hendry says.
While institutional tenders have been scaled back, all the public pool and Sovereign client share applications have been accepted in full.
Of the $37.5 million raised by Sovereign, just under half, $15 million came from two United States based specialist insurance investors, New York-based Eldon Capital Group and Firemark Global Insurance which is headquartered in New Jersey.
Hendry says Sovereign has an exciting future and its directors, "look forward to justifying the confidence of the investors who have supported its capital raising and listing."
The offer, which closed on March 19, was made up of 12 million new shares and 10.4 millions shares owned by existing shareholders, mainly Hendry and fellow founder and joint managing director Chris Coon.
Hendry and Coon retain a 22.1 per cent stake in the firm.
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