Australian insurance group Cover-More lost more than 10 per cent in its first day of trading on the Australian Securities Exchange.
Cover-more, which is backed by Australian private equity firm Crescent Capital Partners, priced its IPO at A$2 per share and dropped to A$1.60 on the ASX today before bouncing back to over A$1.70.
Crescent is expected to reduce its stake in the company to 13 per cent from 83 per cent as a result of the IPO, while the company’s management will cut their interest to 4.6 per cent from 10.7 per cent.
Last month it was reported that another Australian private equity-backed business, BIS Industries, was looking to raise A$500m via its IPO.
Buyout firm KKR reportedly plans to float the business before the end of the year and keep all of its stake.
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