(Alliance News) - Bridgepoint Group PLC on Wednesday said it has priced its initial public offering on the London Main Market, giving the private equity firm a market capitalisation of GBP2.88 billion.
The IPO, first revealed in June, was priced at 350 pence per share. The stock started trading on Wednesday and was up 20% from that offer price at 420.15p in early dealings.
A total of 85.7 million new shares were issued by the company and 139.7 million existing shares were sold by existing holders. This gives an offer size of GBP789 million and represents 27% of Bridgepoint's total 823 million shares. Additionally, there is an over-allotment option of 33.8 million existing shares.
The IPO was run by JP Morgan and Morgan Stanley as joint global coordinators, with BNP Paribas, Citigroup and Merrill Lynch as joint bookrunners.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.6% at 6,925.55
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Hang Seng: down 0.4% at 27,165.17
Nikkei 225: closed up 0.6% at 27,548.00
DJIA: closed up 549.95 points, 1.6%, at 34,511.99
S&P 500: closed up 1.5% at 4,323.06
Nasdaq Composite: closed up 1.6% at 14,498.88
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EUR: unchanged at USD1.1763 (USD1.1764)
GBP: firm at USD1.3612 (USD1.3602)
USD: flat at JPY109.89 (JPY109.91)
Gold: up at USD1,812.93 per ounce (USD1,808.34)
Oil (Brent): soft at USD69.00 a barrel (USD69.14)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
0700 EDT US MBA mortgage applications survey
1030 EDT US EIA weekly petroleum status report
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UK government borrowing eased in June, though the figure was still the second-highest for the month on record. Public sector net borrowing was estimated to have been GBP22.8 billion in June. While this was the second-highest June borrowing since monthly records began in 1993, the Office for National Statistics said, it was GBP5.5 billion less than in June 2020, during the first wave of the coronavirus pandemic. Public sector net debt was GBP2.218 trillion at the end of June, or around 99.7% of gross domestic product, the highest ratio since the 102.5% recorded in March 1961. The ONS said public sector net borrowing in the financial year ended March was estimated to have been GBP297.7 billion, revised down by GBP1.5 billion from last month's provisional figure but still the highest borrowing since records began in 1946.
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Passengers from green and amber list countries may no longer face Covid checks when arriving into England. Leaked instructions to Border Force staff, first reported by the Guardian, said border and customs officials will no longer routinely verify if returning travellers tested negative before departure or completed a passenger locator form. The change, which the Immigration Services Union said came into effect on Monday, is aimed at reducing queue times at airports. Under the current rules, all passengers into the UK must provide a negative Covid test taken before departure, regardless of where they are travelling from. They must also carry out another test two days after their arrival, and complete a passenger locator form with details such as an address. Lucy Moreton, professional officer for the ISU, which represents border immigration and customs staff in the UK, said the leak is accurate.
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BROKER RATING CHANGES
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BERENBERG RAISES NEXT TO 'HOLD' (SELL) - PRICE TARGET 7,100 (6,500) PENCE
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RBC RAISES SCHRODERS TO 'SECTOR PERFORM' ('UNDERPERFORM') - TARGET 3,400 (3,000) PENCE
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JEFFERIES RAISES COMPASS GROUP TO 'BUY' (HOLD) - PRICE TARGET 1,660 (1,440) PENCE
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GOLDMAN SACHS CUTS AVAST TO 'NEUTRAL' (BUY) - PRICE TARGET 615 PENCE
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COMPANIES - FTSE 100
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Clothing and homewares retailer Next said recent sales have been "materially ahead" of internal expectations, resulting in a bump to full-year profit guidance. It also restarted dividend payments, declaring a special payout of 110 pence. It plans to announce another special dividend alongside its Christmas trading statement in January next year, and return to ordinary dividends in the financial year to January 2023. It did not pay out a dividend for its last financial year, ended this past January. The retailer said full price sales in the eleven weeks to July 17 were up 19% on two years ago, ahead of its guidance of 3% growth. It has increased its full-price sales guidance for the rest of the year to 6% from 3%. In addition, Next bumped up its central guidance for full-year pretax profit by GBP30 million to GBP750 million, which is towards the top of its previous guidance. In financial 2021, pretax profit dropped 54% to GBP342.4 million from GBP748.5 million in financial 2020.
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Postal operator Royal Mail said it remains confident on its full-year prospects as it noted that online shopping is holding up even as UK lockdown restrictions ease. For the three months to the end of June, revenue was up 13% on a year ago and 20% higher than two years ago. "The domestic parcel market remains strong. The early signs are that domestic parcel volumes appear to be re-basing at a higher level than pre-Covid as consumers continue to shop online. While domestic parcel volumes decreased 7% year on year, they increased by more than a third, up 35%, compared to pre-COVID levels in 2019-20," the company noted. Royal Mail held its full-year expectations. Chair Keith Williams said: "We continue to expect fluctuations in volumes as we emerge from Covid restrictions, which we will need to manage accordingly. Nonetheless we are encouraged by the revenue performance across Royal Mail and GLS in the first quarter."
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COMPANIES - FTSE 250
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Future, a magazine publisher and new owner of Gocompare, said it expects full-year profit to beat current market forecasts after a strong second half to date. The Media division's performance has been led by "robust" digital advertising revenue and e-commerce product affiliate revenue growth, including Prime Day in June. The Magazines division performance is in line with expectations, it added. As a result of "continued positive momentum", Future expects full-year profit to be materially ahead of current market forecasts. "We are delighted that the group's strong performance has continued throughout the period, which is testament to the strength of our diversified revenue streams and global reach," said Chief Executive Zillah Byng-Thorne.
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Computacenter said it 2021 will likely be another year of "substantial progress" following a robust first half performance. The computer services provider expects to post 50% year-on-year growth in adjusted pretax profit for the first half of 2021. Profit would have been even further ahead had there not been supply shortages in the industry, it said. "As we enter the second half of the year our Services backlog and more particularly our Product backlog, across all geographies, are at a record high which gives us a high degree of comfort," said Computacenter, adding that it concerns remain about supply shortages and a further strengthening of the pound, but does not believe either of these headwinds will get any worse.
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COMPANIES - MAIN MARKET AND AIM
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Estate agent Foxtons confirmed it is reviewing strategic options for mortgage broking business Alexander Hall Associates, which could include the possible sale of the unit. This follows trade publication Mortgage Solutions on Tuesday reporting that mortgage advice firms have been approached by third parties acting for Foxtons as it searches for a buyer for the Alexander Hall business.
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Wednesday's Shareholder Meetings
Bloomsbury Publishing PLC - AGM
Experian PLC - AGM
Gledhow Investments PLC - GM re permission to issue ordinary shares
HarbourVest Global Private Equity Ltd - AGM
Norcros PLC - AGM
Open Orphan PLC - AGM
PayPoint PLC - AGM
QinetiQ Group PLC - AGM
Royal Mail PLC - AGM
St Modwen Properties PLC - GM re acquisition by Brighton Bidco Ltd
Tatton Asset Management PLC - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
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