LONDON (Reuters) - The head of wealth management company Hansard Global sold shares worth almost 100 million pounds on Wednesday as the company listed, pricing shares at the top of the indicated range.
The windfall for Leonard Polonsky, Hansard’s executive chairman, came as he reduced his stake in the company to 49 percent, which is worth 175 million pounds at the issue price.
By 10 a.m. the shares (HSD.L) were trading at 280 pence, valuing the company at 384 million pounds.
Shares were sold in the initial public offering at 260p each, and one dealer said the offer was 10 times subscribed.
The Isle of Man-based company had raised its indicative price range to 235-260p on Monday, up from a previous range of 205-240p, due to strong demand from investors.
Polonsky owned 75 percent of Polar Cap, which raised 132 million pounds from the sale of 50.7 million shares in the IPO, representing about 37 percent of the shares in issue.
Hansard did not raise any money with the flotation, but said a public listing would give the exposure it needs to fuel growth, particularly in the high-net-worth segment.
It offers investment products in a tax-efficient life-insurance “wrapper” to affluent and international investors across the world.
Hansard, which sells its products through intermediaries, reported a profit after tax of 18.3 million pounds in the year to the end of June.
Lazard is acting as financial adviser to Polar Cap and as sponsor to Hansard in connection with the offer. Panmure Gordon is acting as bookrunner for the offer, while Fox-Pitt, Kelton is co-lead manager.