20th Jul 2021 11:21
(Alliance News) - Lords Group Trading PLC climbed 4.7% on Tuesday morning as it made its debut on London's AIM market.
Shares were trading at 99.45 pence, up from the 95p placing price which gave a market capitalisation of around GBP150 million on admission.
The building materials distributor raised proceeds of GBP52.0 million through an oversubscribed placing of 54.7 million shares.
Of the money raised, GBP30.0 million will go to the company while the remaining GBP22.0 million will go to selling shareholders.
"We are delighted to have received such a positive reception from investors and look forward to beginning our journey on the public markets with our wider shareholders on board," commented Chief Executive Shanker Patel.
"We are positioned for the future and whilst others in our sector work to apply technology to their businesses, we are leading the field with systems and e-commerce strategies."
The proceeds would be used to repay outstanding debts and in doing so free up resources for expanding its geographic reach and product range, Lords noted.
Lords was founded in Gerrards Cross, Buckinghamshire 35 years ago and is split between a merchanting division for building materials and DIY goods and a heating and plumbing division.
It now generates GBP288 million in revenue and hopes to achieve GBP500 million per year by 2024 by expanding nationally with a focus on the repairs, maintenance and improvement market.
Cenkos Securities PLC acted as adviser, sole broker and sole bookrunner for the float.
By Will Paige; [email protected]
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