2nd Dec 2019 11:52
(Alliance News) - Promotional products focused software firm Pebble Group PLC priced its initial public offering and conditional placing on Monday at 105 pence per share, intending to raise GBP135 million.
The IPO and conditional placing consists of 75.4 million new shares and 53.5 million existing shares at 105p each and is with institutional investors. It is set to raise gross of approximately GBP135 million.
Given the 105p issue price, Pebble Group's market capitalisation once admitted to trading on London's AIM market will be about GBP176 million.
Pebble Group is raising around GBP79 million net, mostly to repay existing debt facilities in full and settle the outstanding consideration from its Facilisgroup acquisition. Once these proceeds are received, Pebble Group will be debt free.
Facilisgroup is Pebble Group's software-as-a-service business, providing subscription-based services to small and medium enterprise promotional product distributors in the US and Canada. Through its proprietary software, Facilisgroup's SaaS technology platform allows for the improvement of order management, sales analysis, and reporting.
Along with Facilisgroup, Pebble's other main businesses is Brand Addition, which provides promotional products to brands.
Selling shareholders, meanwhile are to receive GBP56 million gross, with Elysian Capital keeping a 14% stake in Pebble Group while management keeps a stake of around 9%.
Funds from the IPO are to assist in future expansion and boost Pebble Group's profile, as well as its ability to provide employee incentives.
AIM share dealings in Pebble Group are set to commence on Thursday this week. Upon admission, it will have 167.5 million shares in issue with a free float of about 48%.
Berenberg is acting as sole global coordinator and broker for the stock offering, while Grant Thornton is the company's nominated adviser.
Chief Executive Christopher Lee said: "I am very pleased to announce a successful conclusion to our IPO and plans to join AIM. The fundraising is well supported by a broad range of significant investors, including a number of blue-chip institutions. "
By Anna Farley; [email protected]
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Related Shares:
The Pebble Gro.