Resolution says IPO raised £600 million

By Myles Neligan

LONDON (Reuters) - Resolution, the investment vehicle founded by entrepreneur Clive Cowdery, said it raised £600 million in its initial public offering, making it one of the biggest on the London bourse this year

Resolution aims to use the proceeds of the capital raising to acquire financial services companies and manage them profitably.

Resolution Chief Executive John Tiner, formerly head of the Financial Services Authority, said on Friday that the group was particularly interested in the life insurance and asset management sectors.

The company said it placed 600 million shares at 1 pound per share, and gave investment bank Citi, one of the underwriters, the option to buy a further 60 million shares at the same price.

Resolution's stock market debut comes as torrid market conditions in the wake of the global banking crisis are forcing many companies to shelve plans to go public.

In Britain, only 14 companies have listed on the main board of the London Stock Exchange so far this year, raising a combined $7.6 billion (£5.15 billion), while no company has raised more than $100 million since energy firm Cadogan Petroleum's (CADP.L) $299 million mid-June listing, according to Thomson Reuters data.

Resolution's IPO is at the lower end of an indicated range of 500 to £1 billion. The company plans to raise between £3 billion and £5 billion in a rights issue next year, sources familiar with the situation told Reuters last week.

"We are delighted with the calibre of investors who have decided to back Resolution's restructuring plans in financial services," CEO Tiner said in a statement.