6th Nov 2015 08:49
LONDON (Alliance News) - Shares in retirement housebuilder McCarthy & Stone PLC rose upon their debut on the London Main Market on Friday, after the group raised more than initially targeted from its initial public offering.
The group said it issued 186.9 million shares at an offer price of 180.00 pence per share, giving the offering a total value of GBP336.0 million and raising net proceeds of GBP90.0 million for the company, more than the GBP70.0 million it had targeted when it announced the plans to float in October. Selling share holders will receive a further GBP246 million.
Early on Friday the shares were trading at 200.00p in conditional dealings, an 11% rise on the IPO price. Unconditional dealings will start on Wednesday next week.
Upon admission, the Bournemouth-based company said its market capitalisation will be around GBP967.0 million. Taking into account the early rise in the shares, its market capitalisation is now around GBP1.07 billion.
The group expects to be eligible for inclusion in the FTSE quarterly index review in March 2016 and will likely be admitted to the FTSE 250 if its market capitalisation remains around the current level.
The group specialises in building retirement homes and flats and is estimated to be responsible for around two-thirds of the retirement housing stock built in the UK each year.
"The level of support that our initial public offering has received is a strong endorsement of our differentiated business model and clearly-defined growth strategy," said Chief Executive Clive Fenton.
"We remain on track to deliver our target of selling more than 3,000 units per annum over the medium term and our plans are underpinned by favourable demographics and the structural undersupply of specialist retirement housing," Fenton added.
The IPO was led by Deutsche Bank, working with Goldman Sachs, Jefferies and Peel Hunt.
By Sam Unsted; [email protected]; @SamUAtAlliance
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