Financials Acquisition Corp is set to undertake an initial public offering, in order to raise £150m which will be used to merge with an insurtech firm.
FAC is a special purpose acquisition company (SPAC) – a company that exists solely to raise capital through acquisitions, mergers and IPOs. It was founded by William Allen and Andrew Rear, who are former principals of Keefe, Bruyette & Woods, and Oliver Wyman, respectively.
The IPO will be one of the first SPACs to float on the London Stock Exchange, since the Financial Conduct Authority changed its rules in July in order to better compete with the US and Hong Kong stock markets.
The co-founders of FAC say that it is the first UK SPAC to focus on insurtech. They are still considering insurtech firms to merge with, focusing on companies that operate across the UK and Europe.
Mr Allen commented:
“Technology has transformed every facet of daily life and ambitious tech-enabled insurers are driving this growth as they disrupt traditional markets.
“Much of this transformation currently stems from private investments and we believe now is the right time to bring these next generation companies to the public market in London – the natural home of insurance.”
Mr Rear said:
“Through the industry expertise and skill set of the management, board and sponsor team, the company believes it can identify and help bring to the public market high quality insurtech companies.
“Our combined global network and track record in insurance give us confidence that we will attract ideal targets in the space and we look forward to bringing a partnership to market soon.”
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