Shares of Quilter PLC Rise on London Debut -- Update

Updates with share-price move, share suspension, and background

By Carlo Martuscelli

Shares of Quilter PLC rose in their first day of trading on the London stock exchange Monday, up 8.7% at 157.54 having launched earlier at 145 pence.

The wealth management company was spun off from Old Mutual PLC (OML.LN)--a financial holding company that sold 165 million Quilter shares for around 231.1 million pounds ($306.4 million).

The IPO represents the upper-middle end of the previously announced price range for the float of between 125 pence and 155 pence per share.

Quilter said the float will give it a market capitalization of around GBP2.76 billion. Shares will be traded both in London and Johannesburg. U.K. shares of the company will trade with the ticker code QLT.

On Monday, trading of shares of Old Mutual was suspended on the Johannesburg, Namibian, London and Zimbabwe stock exchanges, Old Mutual said.

In April, Old Mutual said the separation will mean that for every three shares currently held in Old Mutual PLC, shareholders will receive one share in Quilter PLC and three ordinary shares in Old Mutual Ltd.

The financial conglomerate announced its decision to separate its component business in 2016, motivated by a desire to bring down costs and ensure efficient funding for its constituent companies.

Following the spin off of Quilter, Old Mutual now consists of two Africa-focused companies: OML, a premium financial services group operating in the sub-Saharan region, and Nedbank.

Old Mutual has previously said that it intends to distribute 32% of Nedbank's share capital to Old Mutual Ltd. shareholders, while Old Mutual Ltd. will retain a 20% stake.

Write to Carlo Martuscelli at [e-mail]

(END) Dow Jones Newswires

June 25, 2018 06:22 ET (10:22 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.