Cobra Holdings, the retail and wholesale insurance broking group, is to float on AIM and expects to raise £10m.
The group was formed in 2006 following the merger of three large firms in the south east of England. Since then it has grown rapidly acquiring two more firms and gaining options to buy a third.
Its underwriting arm is on course to achieve £8m of premiums this year with the company targeting £18m for 2008. Meanwhile, its broker network has a combined premium income in excess of £350 million.
The company has also demonstrated strong organic growth and is now one of the UK’s top twenty independent brokers.
The AIM float is seen by the company as a way to continue this growth and more acquisitions are likely to follow.
Steve Burrows, chief executive of Cobra, said: “We believe that a listing on AIM will provide the ideal platform to support the future growth of the Group.
“Cobra is at a stage of development where expansion is the key to its continued success.
“Market conditions are ideal for consolidation in both the London and provincial markets, as insurers are keen to work with fewer, larger broking houses.
“Due to the fragmentation of the provincial market in particular, insurers are actively assisting the growth of consolidators, especially consolidators associated with a broking network.”
Fairfax I.S. PLC is acting as broker and lead financial adviser to Cobra and Dawnay Day is the nominated advisor for the deal.
© Crimson Business Ltd. 2007