15th May 2014 14:44
LONDON (Alliance News) - Shares in Card Factory PLC, the UK greetings card retailer, started conditional dealings Thursday below its offer price of 225 pence, after it joined the growing number of retailers to list on London's main market.
Card Factory shares were quoted at 200 pence Thursday afternoon, 11% below its IPO price of 225 pence, having opened at 220 pence. The shares start unconditional dealings on Tuesday next week.
The company, which opened its first store in Wakefield in 1997, and now operates from over 700 stores nationwide, said it raised GBP90 million of gross proceeds via the initial public offering of 131.8 million new and existing shares, which the company had previously said it would offer to certain institutional and other investors in the UK and elsewhere outside the United States.
Card Factory's IPO price gave it a market value of around GBP766.6 million.
"Ours [Card Factory] is a well-invested and cash generative business with a strong business model, creating an excellent platform for further profitable growth," said Chief Executive Richard Hayes in a statement.
On admission, the company had 340.7 million shares in issue, with a free float of 38.6% assuming no exercise of the over-allotment option, and 42.5% assuming exercise of the over-allotment option in full.
Amongst the selling shareholders were Charterhouse Capital Partners, of which it is majority owned by, and certain individual shareholders comprising current and former members of the group's management.
Following admission, directors and members of the group's management hold 19.2%, while Charterhouse Funds hold a 41.3% shareholding.
In a statement last month, Card Factory said that at the time of admission, it would have approximately GBP160 million net debt, which the net proceeds of the share offer would be used to reduce this.
Card Factory said it sold over 285 million single cards in the financial year ended January 31, 2014. During the year, the group achieved revenue growth of 9.0% to GBP326.9 million and underlying EBITDA growth of 9.2% to GBP80.4 million, up from GBP73.6 million at a margin of 24.6%.
Looking ahead, the firm said it plans to continue its expansion strategy - it has opened an average of 50 new sites per annum over the last 10 years - eyeing a boost from its current 733 stores to 1,200 in the UK and Ireland over the next decade.
The company's intention to float follows a spate of retailers to IPO since the beginning of the year, including online takeaway service Just Eat PLC, convenience store chain McColls Retail Group PLC, discount retailer Poundland PLC and most recently, cafe chain and bakery owner Patisserie Holdings Ltd.
Working on the IPO, Morgan Stanley & Co. International PLC and UBS Ltd are acting as joint sponsors. Morgan Stanley Securities Ltd and UBS Ltd are acting as Joint Global Co-ordinators and, together with Nomura International PLC, as joint bookrunners. Investec Bank PLC is acting as joint lead manager.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Card Factory