22nd Oct 2015 08:27
LONDON (Alliance News) - Clay bricks and concrete products manufacturer Ibstock PLC on Thursday said it has raised GBP100.0 million for the company from its flotation in London and saw its shares rise in conditional dealings.
Ibstock will issue 162.2 million shares at 190.00 pence per share as it floats on the Main Market of the London Stock Exchange. Shares in the company were trading at 194.5 pence, 2.4% up from the IPO price.
Upon admission, the company said it market capitalisation would be around GBP770.5 million, sufficient to make it eligible for entry to the FTSE 250.
In total the offer is expected to raise GBP208.2 million and will raise GBP254.4 million assuming the over-allotment option is exercised. Ibstock itself will get GBP100.0 million of those funds, with the rest going to the selling shareholders, led by private equity group Bain Capital.
The company is the leading clay bricks manufacturer in the UK by volume, with a market share of around 40%, and has a strong share of the US market through its Glen-Gery subsidiary.
"A successful listing is a milestone in the development of the group, and we are delighted to be returning to the public markets. Against a background of robust demand fundamentals, we have a clear growth strategy in place and are investing in new capacity and new product development to increase volumes to supply the recovering housing markets in the UK and the US," said Wayne Sheppard, Ibstock's chief executive.
"Flotation enhances our ability to execute these growth plans at a time when prospects for the business are robust and we are excited about our future as a listed business," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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