IT services provider FDM Group Holdings plc Tuesday said it has priced its 84,561,856 shares initial public offering at 287 pence per share. The company expects to raise 242.7 million pounds, of which 8 million pounds will go to the company and 234.7 million pounds to selling shareholders.
The selling shareholders comprise of Inflexion Private Equity and certain Directors, members of the senior management team and other individuals.
The eight million pounds raised for the com[any will be used to repay offer-related fees, bank debt and for general working capital purposes, FDM Group said in a statement today.
After deducting underwriting commissions, other estimated offering-related fees and other related expenses, the company will receive around 3 million of net proceeds.
Based on the offering price, the company's market capitalization will be around 308.5 million pounds.
The company also said its issued share capital of 107,517,506 ordinary shares will shortly be admitted to the premium segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange.
As part of the IPO, Inflexion Private Equity will sell its entire stake in the company. Following the completion of the IPO, the Directors and members of the senior management team will, in aggregate, own around 20.4 percent of issued share capital.
For the year 2013, the company reported a profit of 14.73 million pounds on revenues of 105.62 million pounds.
The directors of the company expect the admission to help in raising the profile of FDM, assisting in retaining and incentivising employees, and providing it with a structure for future growth.
Admission and the commencement of dealings in the shares is expected to occur at 8.00 a.m. on June 20, 2014.
Investec Bank plc is acting as sponsor, financial adviser, sole bookrunner and broker in respect of the Offer.
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