18th Jun 2014 08:18
LONDON (Alliance News) - Property website Zoopla Property Group PLC Wednesday priced its initial public offering price at 220 pence per share, valuing the business at GBP918.8 million, while ventilation products supplier Volution Group PLC set its own IPO price at 150 pence per share, giving it a total market capitalisation of GBP300.0 million.
The two flotations on the London main market got off to a mix start Wednesday morning, with Zoopla's share trading up at 229.50 pence and Volution down at 148.00 pence soon after the open.
Zoopla's initial public offering will make it one of the ten biggest companies to list in London so far this year.
Zoopla, which operates the UK's second largest property website after Rightmove.co.uk, owned by Rightmove PLC, said its offer consists of 160.0 million shares, representing 38.3% of its issued share capital, excluding 16.0 million in over-allotment shares, 10% of the base offer. The offer consists of the sale of existing shares only; no new shares are being issued. The company has 417.6 million shares in issue.
Daily Mail and General Trust PLC, which held a 52.1% stake in Zoopla prior to the IPO, said it will sell a maximum of 40% of its shareholding, retaining at least a 31% stake. It said the maximum it could receive as part of the IPO is GBP190 million.
Countrywide PLC, which held a 6% stake in Zoopla, said it will sell 9.1 million shares, prior to the exercise of the 10% over-allotment option, representing 2.2% of Zoopla shares that will be in issue at admission. It will raise GBP19.9 million from the sale. Following admission, Countrywide will hold a 4.1% of Zoopla's shares.
LSL Property Services PLC, with a 4.9% stake in Zoopla, said it will sell 8.9 million shares, representing 2.1% of Zoopla. Gross proceeds realised by LSL will be GBP19.5 million. LSL also said it has made available up to 926,813 Zoopla shares that are subject to the over-allotment option.
Following admission, LSL will hold 2.6% of Zoopla's shares. The company said it will return all the proceeds from the sale to shareholders.
Daily Mail, Countrywide and LSL all will be subject to a 180-day lock-up for their remaining shares.
Zoopla said it expects to be eligible for inclusion in the FTSE UK Index Series at the quarterly review in September 2014.
Credit Suisse Securities Ltd and Jefferies International Ltd are acting as joint sponsors and bookrunners, while Canaccord Genuity Ltd is acting as co-lead manager.
Volution, a supplier of ventilation products to the residential construction market in the UK, Sweden and Germany, said its offer will consists of 66.7 million shares representing 33.3% of its enlarged share capital. The offer is made up of 48.0 million new shares being issued by the company and 18.7 million existing shares being sold by selling shareholders. The company will have a total of 200.0 million shares in issue upon admission to trading.
The offer is expected to raise gross proceeds of GBP100.0 million for company.
Last month the company said it plans to use GBP72 million to repay existing debt and to settle fees and expenses, with the remainder of the IPO proceeds retained for general corporate purposes.
Windmill Holdings BV, an affiliate of funds managed by TowerBrook Capital Partners LP, and the executive directors of Volution expect to receive gross proceeds of around GBP28.0 million from the sale of existing shares in the offer.
Following admission, TowerBrook will have a 61.4% of Volution's shares, which are subject to a 180 day lock-up.
Canaccord Genuity Ltd is acting as the sole sponsor and, with Liberum Capital Ltd, will act as joint bookrunners.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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