Posted on March - 29 - 2010
Investors on board for Promethean float
The flotation of Lancashire-based educational whiteboards firm Promethean could trigger interest from other companies mulling admission to the stock market, say Manchester advisers.
Promethean announced on Friday it had raised £186m and would list its shares at 200p, valuing the business at £400m.
The group is selling 46.4 per cent of the business through the issue of new shares and private equity firm Apax is selling its 25 per cent stake.
The move will leave 10.4 per cent of the shares in the hands of senior directors.
Founder Tony Cann is selling seven per cent of his stake, leaving him with 39.6 per cent valued at £160m.
Promethean said the proceeds of the initial public offering would repay loans to the company made by Mr Cann and senior management, and would bolster the firm’s cash position.
Staff will receive a bonus based on their length of service.
John O’Brien led a team at KPMG in Manchester who advised Promethean and said: “It’s a global business with a fantastic growth story that has been taken on board by investors.
“Volatility in the market hasn’t helped but they stuck to their timetable and floated when they said they would. Their success may now herald renewed interest in IPOs from companies that may have put their plans on hold in the light of the economic crisis.”
Richard Bell, head of transaction services for the UK regions at Deloitte, said: “Investors have shown that they are keen to buy into companies with the right story, the right management, and the right capital structure and at the right price.”
Promethean’s oversubscribed share offer attracted investors with its debt-free capital structure and potential for growth.
It posted revenues of £205.1m in 2009 with profits of £33.9m, and analysts expect annual earnings growth of 20 per cent.
Chief executive Jean-Yves Charlier, said 87 per cent of sales are generated outside the UK.
The Belgian added: “Our technology helps meet the fundamental need of raising learning standards and Promethean is a world leader in this field. We believe the market is still in its very early days and we see considerable opportunities which we intend to grasp.”
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