20th Dec 2021 11:57
(Alliance News) - CT Automotive Group PLC, which makes custom interiors for cars, said on Monday it will have a GBP75 million market value, following the pricing of its initial public offering on the AIM market in London.
CT Automotive placed 22.9 million new shares at 147 pence each with institutional investors, raising GBP33.6 million for the company. The funds will be used to repay debt.
The IPO price will give the company a market capitalisation of GBP75 million when shares start trading on Thursday. It will have a free float of about 45%.
The IPO was run by Liberum Capital Ltd as nominated adviser and broker.
CT Automotive is based in Portsmouth, England, but mostly makes its bespoke interior components - such as arm rests and dashboard panels - in China, Turkey and the Czech Republic. The company was founded in 2000 by Executive Chair Simon Phillips. Chief Executive Officer Scott McKenzie joined in 2007 from Canadian auto parts manufacturer Magna International Inc.
Production revenue was USD100 million in 2019, though the company suffered a setback along with other suppliers to automakers during the pandemic in 2020. Despite the semiconductor shortage that is now holding back car production, CT Automotive said it expects production volumes to recover in 2022 ahead of supply chain issues full resolving in 2023.
"We are an essential part of the supply chain for a growing number of the world's leading car manufacturers in a market worth approximately USD6.5 billion," CEO McKenzie said.
"The funds raised through the placing will increase our capacity to invest in the growth of the business, supporting our ambitions to develop relationships with more manufacturers and further increase our market share."
By Tom Waite; [email protected]
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