Hastings shares drop below IPO price

12th Oct 2015 12:01

(ShareCast News) - Shares in UK insurer Hastings Group have dropped below their IPO on the first day of trading.The shares opened in line with their 170p IPO but soon fell below.Hastings said on Friday that the offer was expected to raise gross proceeds of between £210m and £231m, with the company receiving £182m of gross proceeds.Chief executive officer Gary Hoffman has said: "We are pleased to welcome our new shareholders to Hastings as we embark on the next exciting chapter for our business. I am proud to lead a great team of 2,000 colleagues. As a listed company we will continue to deliver refreshingly straightforward insurance for our customers and seek to continue our path of profitable growth."Hastings generated operating profits of £105.7m last year and, thanks to the efficient corporate structure and cash generative retail business, directors intend to pay out a annual total dividend of 50-60% of group profits after tax, amortisation, share scheme costs and exceptionals.