Pet insurer Greenstone prepares to list
BRIDGET CARTER - THE AUSTRALIAN 6 HOURS AGO
Pet and life insurance distributor Greenstone will have a market value of $1.4 billion to $1.6 billion when it lists as a public company in June, according to estimates released from analysts.
Research from investment bank Citi also suggests that the company will have an enterprise value of $1.5bn to $1.7bn.
The price estimates equate to 15.7 to 17.9 times Greenstone’s 2016 forecasted net profit.
It comes as analyst research is presented to prospective investors as part of Greenstone’s management roadshow.
The roadshow is part of plans by its parent company, global insurance giant Hollard, to raise about $900m through an initial public offering.
Macquarie Capital and Goldman Sachs are joint lead managers for the IPO while co-lead managers include Deutsche, JPMorgan and Citi.
Greenstone has been described as a leading distributor of direct personal insurance products in Australia.
According to Citi, Greenstone likely holds the number one position in the pet insurance market, offering products mainly for cats and dogs.
Owner of the insurance comparison website Choosi, it also ranks in the number two position for direct life insurance, where it primarily sells life, income protection and funeral insurance.
Despite the products it sells, Greenstone takes no underwriting risk.
The company receives agency revenues via a retail margin of up to about 40 per cent of the total policy economics.
