Moneysupermarket set for £1bn flotation
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The float was first rumoured to be happening earlier this month when the price comparison website appointed investment bank UBS as its main financial adviser.
The flotation is thought to be worth £1bn and earlier this month co-founder Duncan Cameron sold his almost 50 per cent stake in the business to a holdings company set up by moneysupermarket.com CEO Simon Nixon.
Nixon’s new company paid £162m cash for Cameron’s holding plus approximately 5 per cent of the new company.
Cameron left moneysupermarket.com five years ago after a fall-out with Nixon.
The company offers price comparisons on financial products including protection, mortgages and credit cards as well as flights, mobile phones and general insurance.
The Group’s websites attracted approximately 64 million visitors and approximately 523 million page impressions in the year ended 31 December 2006.
Moneysupermarket.com derives revenues predominantly from fees paid by providers with whom it has a provider contract, advertisers and financial intermediaries.
The Group generated revenues of £104.5 million in the financial year ended 31 December 2006, reflecting 54 per cent increases as compared to revenues of £68 million in the financial year ended 31 December 2005.
Moneysupermarket.com says it intends to apply for admission of its Ordinary Shares to the Official List of the FSA and to trading on London Stock Exchange plc’s main market for listed securities.
The Global Offer will consist of an offering of new and existing Ordinary Shares by the Company and certain shareholders respectively.
The proceeds of the Global Offer received by the Company will principally be used to repay the Group’s existing debt facilities and to fund the Group’s expected growth.
Following the Global Offer the Chief Executive and the senior management team are expected to own a majority interest in the Company.
The Global Offer is expected to comprise an offer to institutional investors in the UK and in certain other jurisdictions as well as an offer to retail investors in the UK, Channel Islands and Isle of Man. The Company also intends to make an employee offer to eligible employees of the Group.
Credit Suisse is acting as Sole Sponsor, Sole Global Coordinator and Bookrunner in connection with the Global Offer; Lehman Brothers International (Europe) and UBS Limited are acting as Co-Lead Managers in connection with the Global Offer.
Chief executive Simon Nixon says: "We are delighted to make this announcement today. Over the past seven years, moneysupermarket.com has focused on building its internet business by putting consumers first and a public listing will help us to continue raising the profile of the Company as a consumer champion. We believe the strength of our brand and market position, combined with our consumer focus and record of innovation, mean we are well positioned to capitalise on the positive trends we see in our chosen markets”
Retail investors will have to register their interest by July 5 2007.
