Go Compare deal to kick off strong IPO activity
Insurance outfit Esure has confirmed it will spin off its price comparison website Go Compare in a post-referendum boost to London's IPO market.
Go Compare could be valued at up to £650m when it floats on the London Stock Exchange later this year, just 18 months after Esure took full control of the group in a deal which valued the website at £180m.
Experts said the deal could be the first in a string of end-of-year IPO activity for the City as firms revive their plans to go public following the EU referendum.
Read more: Meet the companies who ignored the referendum IPO freeze
"The outlook for primary issuance IPOs looks promising," said Lucy Tarleton, who leads PwC's IPO origination team. "We had uncertainties in the run-up to the referendum, but a lot of those uncertainties have gone away.
"There are some significant sized deals in the pipeline."
EY's IPO leader Scott McCubbin also said the outlook for floats had rapidly improved following the vote. Last week Jackpotjoy owner Intertain announced its intention to list on the London main market in October.
"Post-Brexit we were pessimistic," McCubbin told City A.M. "Time has moved on, and we're more optimistic.
"The currency has stabilised … and we are starting to see some green shoots in the IPO market. We're seeing some large transactions in the pipeline, and we'll see quite a few transactions take place before Christmas."