15th Jul 2014 11:19
LONDON (Alliance News) - Building products company Epwin Group Ltd priced its initial public offering Tuesday, as food concessions operator SSP Group PLC and pharmaceutical services company Ergomed PLC were admitted to trading.
Epwin priced its initial public offering on AIM at 100 pence per share, giving it a market capitalisation of GBP135 million. Of the about GBP94 million raised in the IPO, Epwin said it plans to use GBP10 million to repay some of its debt, in combination with new debt facilities put in place of GBP25 million.
It said that this will allow it to operate with greater flexibility, which would allow it to pursue a range of strategic options including increasing investment, considering acquisition opportunities, and increasing shareholder returns via dividends.
Epwin expects to start trading next Thursday. It will have 135.5 million shares in issue with a free float of approximately 70%.
SSP Group PLC was admitted to full dealings on the main market of the London Stock Exchange after starting unconditional dealings last week, whilst Ergomed was admitted to AIM market.
SSP, which runs food concessions at airports and railway stations and owns the Caffè Ritazza and Upper Crust brands, priced its initial public offering at 210 pence per share last Thursday, giving it an initial market capitalisation of GBP997 million. On Tuesday, shares in the company were trading at 225.00p.
The company's market capitalisation is likely to push it straight into the FTSE 250 at the next quarterly index review.
Ergomed PLC was admitted to trading after raising GBP11 million in its offering at 160 pence per share, giving it a market capitalisation of GBP46.0 million with 28.8 million shares in issue.
Shares in Ergomed were trading at 161.94 pence Tuesday afternoon.
Ergomed will use funds it raised in the IPO to complete the acquisition of its sister company, PrimeVigilance for GBP6 million in cash and 1.9 million new shares worth GBP3 million at its IPO price. PrimeVigilance will continue to operate as an independent specialised pharmacovigilance and medical-information service provider.
Ergomed will use the remainder of the proceeds it raised in its IPO to make further acquisitions, buy a proven data management/biostatics platform to increased the data management capability of its services business, and expand its rare disease franchise.
Ergomed and PrimeVigilance together generated GBP19.2 million in revenue in 2013, it said.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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