6th Mar 2015 08:37
LONDON (Alliance News) - DFS Furniture PLC Friday said it has set a price for its initial public offering at the lower end of the company's guidance, with conditional dealings commencing Friday.
The company set the offer price at 255.0 pence per share, which give the sofa retailer a market capitalisation of GBP543.2 million. This is toward the lower end of the company's guidance in February, when it said the offer price would be between 245.0 pence to 310.0 pence per share.
The stock is quoted at 259.0p early Friday.
The offer comprises of 80.9 million shares, equating to an offer size of GBP206.4 million, representing 38% of the company's share capital on admission, excluding the over-allotment option.
Advent, a shareholder in DFS, has granted UBS, as stabilising manager, an over-allotment option in respect of up to 12.1 million shares, exercisable no later than thirty days from Friday, it said.
From the issue of new shares, DFS will raise gross proceeds of GBP98.0 million, as previously announced. DFS said the funds will be used to reduce the company's debt, thereby providing access to a lower cost of financing, and for the payment of transaction fees.
Existing shareholders, including Advent and DFS management, will together receive gross proceeds of GBP108.4 million pursuant to the offer, assuming no exercise of the over-allotment option, said the company.
Following the admission of shares, Advent will hold a 55.9% stake in DFS if there is no exercise of the over-allotment option, or a 50.2% stake if the over-allotment option is exercised in full. The directors of the company will hold a combined 3.2% stake.
"We look forward to further building on our excellent track record of sales, market share growth and cash generation, as the UK's leading retailer of upholstered furniture," said Chief Executive Ian Filby.
By Joshua Warner; [email protected]; @JoshAlliance
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