27th Jan 2014 12:35
LONDON (Alliance News) - The UK convenience store and newsagent chain McColl's Retail Group Ltd, said Monday it intends to make an initial public offering on the main market of the London Stock Exchange by the end of February, to raise gross proceeds of around GBP50 million.
McColl's said the offer also will include a partial sale of the holding of Cavendish Square Partners Ltd. Following the IPO, McColl's will have a free float of 50% of its shares.
The group said the shares will be offered to institutional and professional investors by Numis Securities Ltd.
McColl's operates 714 branded convenience stores and a total of 562 newsagents across the UK. It said it is targeting a store portfolio of 1,000 convenience stores and 350 newsagents by the end of 2016. The company also operates 423 post offices.
Revenue was GBP869.4 million in 2013, with adjusted earnings before interest, tax, depreciation and amortisation of GBP34.9 million.
McColl's said the net proceeds from the offer will be used to reduce the level of outstanding borrowings under its existing debt facilities.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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