UK’s Saga Confirms Plan to Sell Shares in London IPO

Saga Plc, which provides insurance and holidays to Britain’s over-50s, confirmed earlier reports that it will sell shares in an initial public offering as its private equity owners cut their stakes.

The company expects to raise about £550 million ($924 million) in the sale in London, Saga said in a statement today. Charterhouse Capital Partners LLP, CVC Capital Partners Ltd and Permira Advisers LLP, which have owned Saga since 2007, will also reduce their stakes, the firm said.

The three are selling amid a rush of IPOs in Europe as economic growth and equity markets rebound. Companies including Royal Mail Plc and Pets at Home Group Plc raised $18.9 billion in IPOs so far this year, almost three times as much as the $6.6 billion raised in the same period a year earlier, according to data compiled by Bloomberg.

Saga had underlying earnings before interest, depreciation, tax and amortization of £222.4 million ($373.6 million] on revenue of £1.2 billion [$2 billion] in the 12 months through Jan. 31, the company said.

Citigroup Inc., Bank of America Corp., Credit Suisse Group AG, Goldman Sachs Group Inc., JP Morgan Cazenove and UBS AG are managing the offering, along with Investec Bank Plc and Mizuho International Plc, Saga said.