2nd Jul 2021 09:04
(Alliance News) - Online-only building materials retailer CMO Group PLC said Friday that it is planning to float on London's junior AIM market on Thursday next week.
CMO Group has conditionally raised GBP45 million from a placing by Liberum Capital of 34.1 million new and existing shares at an initial public offering price of 132 pence.
CMO raised GBP27.3 million from issuing 20.7 million new shares and GBP17.7 million from 13.4 million existing shares.
Based on the placing price, the market capitalisation of the company will be around GBP95 million on admission.
CMO will have 72 million shares in issue and a free float of 46% per cent. Key Capital Partners will retain 27% stake in CMO Group, while founders and management will own 17%.
"The company intends to use the net proceeds of the placing together with its existing cash resources to provide CMO with a long-term funding model; execute on strategic opportunities, both organically and through M&A; and reduce debt and restructure the group's balance sheet thereby providing further flexibility to fund future growth," CMO explained.
CMO originally unveiled the plans a couple weeks ago, said it was looking to capitalise on trends for online shopping and home renovations.
On Friday, Chief Executive Dean Murray said: "CMO has an exciting opportunity ahead as we continue to capitalise on our first mover advantage and digital platform to further increase market share as customers increasingly move online for their building materials requirements.
"We are particularly encouraged by the strong demand we have experienced from high calibre institutional investors which is clear validation of CMO's market opportunity and strong future growth potential."
Admission is excepted on July 8.
The online-only retailer of building material sells over 75,000 products - including tiles, roofing materials and insulation - through its seven websites. The firm said it expects to continue benefitting from the strength of the home improvement market and the long-term shift to online shopping.
In a trading update on June 25, CMO said it made a strong start to the year, with like-for-like sales growth for the five months to the end of May more than 30% better than the same time last year. Total sales, including acquisitions, were up 70% year-on-year.
By Paul McGowan; [email protected]
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