The London Stock Exchange is set to get a rare new listing, with London Innovation Underwriters Limited (LIU) set to go public via a £300 million reverse merger with special-purpose vehicle Financials Acquisition Corp (FAC) next month.
LIU, a group of of syndicates in the Lloyd’s of London insurance market, is set to trade on the London Stock Exchange’s Main Market after its merger with Finsac closes on 14 November. The firm offers public-market investors a chance to share in the gains of syndicates in the centuries-old risk market.
The plans for LIU to go public were already set out in September, but FAC has now set a date for the combination, which is set to raise £300 million.
William Allen, CEO of FAC and executive director of LI, said: “The board of LIU believe that the current market backdrop presents an opportunity for a wide range of institutional and retail investors to gain capital efficient liquid access and diversified exposure to the Lloyd's of London insurance market.
“Supported by its highly experienced management team, LIU will provide investors with access to a diverse portfolio of some of the best performing syndicates the Lloyd's market offers together with the opportunity to benefit from fast growing risk classes and broader innovation across the market.”
Senior independent director Paul Jardine said: "The business combination of FAC with LIU and creation of a London Stock Exchange main market listed operating company is intended to offer investors with balanced access to a wide range of syndicates on the Lloyd's market combined with high standards of corporate governance and transparency. LIU will offer an investment opportunity to investors whilst also supporting continued innovation and growth within the Lloyd's market."
