28th Sep 2015 10:19
LONDON (Alliance News) - Clay bricks and concrete products manufacturer Ibstock PLC outlined plans to float on the Main Market of the London Stock Exchange on Monday morning, while travel company On the Beach Group PLC saw its shares surge higher as it started trading.
Ibstock did not provide any details on the pricing of its shares, but said it expects to raise gross proceeds of around GBP100.0 million from the float. The company intends to use the funding to reduce its debt pile and to refinancing its existing obligations via a GBP200.0 million lending facility.
The company is the leading clay bricks manufacturer in the UK by volume, with a market share of around 40%, and has a strong share of the US market through its Glen-Gery subsidiary. The group said it is floating at a time when it is seeing strong structural demand growth in the UK market.
It joins AIM-listed Michelmersh Brick Holdings PLC, a much smaller rival, as London-listed brick makers.
For the year to the end of June, Ibstock made earnings before interest, taxation, depreciation and amortisation of GBP87.0 million on revenue of GBP395.0 million.
Following completion of its float, Jamie Pike will be appointed as the company's chairman. He is currently the chairman of RPC Group PLC, the plastic products company, and is chairman of Tyman PLC, the door and window components supplier. He also was the chairman of Lafarge Tarmac UK, the building products company, until July this year.
On the Beach, which specialises in short-haul beach holidays, said on Wednesday last week it will place 52.2 million shares at a price of 184 pence each as it floated on the London Stock Exchange's Main Market. Shares in the company were up 20% in morning trade to 221.57 pence.
It had a market capitalisation of GBP240 million at its offer price, which has now risen to GBP289 million.
By Sam Unsted; [email protected]; @SamUAtAlliance
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On The Beach