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Quindell Portfolio raises £200mln for new contracts

Last updated: 02:21 15 Nov 2013 EST, First published: 03:21 15 Nov 2013 EST

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Technology outsourcing group Quindell Portfolio (LON:QPP) has raised £200mln through a placing of 1.32bn shares at 16p, a slight premium to Thursday’s closing market price.

The company, which currently has a market capitalisation of £705mln, said it would spend the money on the working capital needed for new contracts expected to be signed in the coming months.

It recently sealed a three-year deal with car insurance group Direct Line (LON:DLG) worth over £150mln, an example of its collaborations with insurers.

The placing, which was carried out by Cenkos Securities and Canaccord Genuity, saw strong demand from existing and new institutional investors, the company claimed.

It also said the group is on track for a full-year profit result at the upper-end of current market expectations and expects to announce more contract wins in the coming weeks.

Quindell Portfolio is eyeing up a move to the main market of the London Stock Exchange in March 2014.

The company also unveiled plans to change its name to Quindell plc. It said the switch will reflect the company’s focus on the “integrated provision of sector leading expertise in software, consultancy and technology enabled outsourcing in insurance, telecommunications and their related sectors”.

Founder and chief executive, Rob Terry, said: “The board would like to take this opportunity to thank its staff who have delivered significant profitable growth for Quindell whilst building a platform that we believe will underpin Quindell's organic growth for years to come.  

“This has been achieved whilst continuing to drive down the cost of claims for the insurance industry and by still providing exceptional levels of ancillary income to our partners, which ensures the long-term sustainability of our model.”

Shares rose 1.8% to 16.3p.


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