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LONDON (Alliance News) - The strong start to the year for UK initial public offerings continued Friday as Boohoo.com became the fifth UK retailer to float in 2014, conditional dealings for oil rigs company Gulf Marine Services got under way, and OneSavings Bank said it is considering an IPO.

Shares in online fashion retailer Boohoo.com started unconditional dealings on AIM at a large premium to its offer price, after it raised GBP300 million by offering of 600 million shares at 50 pence a share, giving it a market capitalisation at the IPO price of GBP560 million. However, its stock was trading at 74.988 pence midday Friday.

Earlier this week discount retailer Poundland and pets products retailer Pets at Home Group priced their initial public offerings, and commenced conditional dealings, following IPO's from newsagent and convenience store chain McColl's Retail Group and online appliance retailer AO World PLC, earlier this year.

Conditional dealings in Gulf Marine Services got off to a less buoyant start on the main market, dropping slightly. It had priced its initial public offering at 135 pence per share, raising gross proceeds of GBP66.9 million, giving it an initial market capitalisation of GBP472 million. However, it was down slightly at 134.75 pence midday.

OneSavings Bank, the UK lender owned by Kent Reliance Provident Society and private equity company JC Flowers, said it is considering an initial public offering on the London Stock Exchange, as it reported a near quadrupling in 2013 pretax profit.

The news comes after the Chief Executive of rare and antiquarian book dealer Scholium Group had told Alliance News that the company will price its IPO next week at 100 pence a share, giving it an initial market valuation of GBP16 million.

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FTSE 100: Down 0.6% at 6,513.65
FTSE 250: Down 0.9% at 16,045.94
AIM ALL-SHARE: Down 1.2% at 869.25
GBP-USD: 1.6600
EUR-USD: 1.3879
GOLD: USD1,374.30 an ounce
OIL (Brent): USD107.10 a barrel

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Key UK Corporate News

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FTSE 100: The US government has decided to lift the ban on BP bidding for federal government contracts, four years after the Deepwater Horizon rig explosion in April 2010. The decision will enable BP to bid for new contracts that could generate million of dollars of new business for the company. Moody's Investors Service downgraded Royal Bank of Scotland Group's supported long-term ratings to Baa2 from Baa1, one month after placing the bailed-out bank on review. RBS's restructuring played its part in the decision, with the ratings agency stating that a standalone credit assessment of Ba1 better reflects the risk the restructuring poses to bondholders. Vodafone said the integration of recent acquisition Kabel Deutschland with its own German operation will start from April 1 after it registered the required takeover documents, the last step in the takeover process. Wm Morrison Supermarkets said that data from its staff payroll system, including bank account details, was stolen and published on the internet. The struggling supermarket chain said the information was taking off the website immediately, and according to initial investigations was not a result of external computer hacking.

FTSE 250: British pub chain JD Wetherspoon Friday said sales and profits grew in the first half of its financial year, but it warned of slower like-for-like sales in the second half of the year and said investments, including on higher salaries and training for its staff, weighed on its profit margin.

AIM: Scientific Digital Imaging is up after it launched its new high sensitivity image analysis systems. Baobab Resources is doing well after it said it would get another GBP3.1 million after African Minerals Exploration & Development Fund SICAR SCA's investment fund exercised 27 million options over the company's shares at 11.574 pence. Baobab said it will use the money to continue funding its definitive feasibility study work programme, which is on schedule for completion towards the end of 2014. Magnolia Petroleum is up after the US-focused onshore oil and gas production company said it expects full-year earnings before interest, taxation, depreciation and amortisation, adjusted for any foreign exchange gains or losses, to be ahead of market expectations, with revenues in line with expectations. Clean Air Power is another gainer after it said it plans to launch its dual-fuel products in the US and Russia after narrowing its losses in 2013, driven by strong demand for its systems. Black Mountain Resources is down after it had to secure a USD1.5 million facility that will be used to move its New Departure silver project into production while it awaits delayed funding from Alcyone Resources Ltd. Tanfield Group is a big faller despite the group reporting that its two passive investments, Snorkel International Holdings and Smith Electric Vehicles Corp, performed well during 2013, and that it sold its loss-making engineering business in December. Touchstone Gold is down after it raised GBP100,000 through a subscription, money it will use for working capital while it repositions itself and considers new opportunities.

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Top Economics And General

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The UK visible trade deficit widened more than expected in January due to a fall in exports amid rising imports. The visible trade shortfall increased to GBP 9.8 billion from GBP 7.7 billion in December, the Office for National Statistics showed.
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Eurozone employment increased marginally in the fourth quarter, Eurostat. Employment rose 0.1% sequentially after remaining stable in the previous quarter.
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Germany's harmonized consumer price inflation slowed as initially estimated in February, final data published by Destatis showed. EU harmonized inflation slowed to 1% in February from 1.2% in January. Compared with January, the harmonized index of consumer prices gained 0.5% in February. The statistical office confirmed the preliminary estimate published on February 27.
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Warnings from business leaders and the Bank of England about the uncertainties facing an independent Scotland are not a "myth," British Prime Minister David Cameron was to warn Scots on Friday. The premier is to use a speech at the Scottish Conservatives conference in Edinburgh to attempt to dispel accusations that his government has been trying to frighten Scots into remaining British when they vote in an independence referendum in September. "This referendum is a major life decision - and you don't make one of those without getting all the information you can," he was to say.
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US Secretary of State John Kerry was due to meet Russian Foreign Minister Sergei Lavrov in London, in an 11th hour attempt to stop Crimea's secession from Ukraine. The Moscow-backed authorities in the Black Sea peninsula plan to hold a referendum on "rejoining" Russia on Sunday. The US and the EU have threatened sanctions against Russia if the vote goes ahead. Kerry and Lavrov already met twice in recent days, without result.
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The search for a missing Malaysia Airlines passenger jet expanded westwards towards the Indian Ocean, amid new information gathered by US investigators that the aircraft may have flown for hours after it dropped off the radar. The Indian government said it has sent three boats and three aircraft to help with the search for the missing Malaysia Airlines jet in the Andaman Sea, which is part of the Indian Ocean.
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The members of the Bank of Japan's monetary policy board said that the country's economy is continuing its moderate recovery, and that recovery is expected to continue, minutes from the central bank's February 17-18 meeting revealed."Japan's economy has continued to recover moderately, and a front-loaded increase in demand prior to the consumption tax hike has recently been observed. Overseas economies -- mainly advanced economies -- are starting to recover, although a lackluster performance is still seen in part," the minutes said.
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British Prime Minister David Cameron on Thursday urged Palestinian President Mahmoud Abbas to take the "difficult" decisions needed to reach a framework agreement with Israel by an April 30 deadline. He had made the same plea to Israeli Prime Minster Benjamin Netanyahu and Israeli lawmakers a day earlier in nearby Jerusalem. But his visit to Israel and the West Bank was overshadowed by the worst flare-up in violence in southern Israel and the Gaza Strip since November 2012, when a fragile Egyptian-mediated truce ended a fierce, eight-day Israeli offensive.
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The Syrian conflict has caused the world's largest refugee crisis as it has forced 40% of the population from their homes, the UN refugee agency said in Geneva. More than 9 million Syrians have been displaced since the conflict started three years ago, the Office of the UN High Commissioner for Refugees said. More than 6.5 million have sought refuge within Syria, while 2.6 million have fled to countries in the region.
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Tobacco products in the EU will feature bigger and more graphic health warnings in coming years, after the bloc's governments approved new rules to curb smoking. The European Parliament had already endorsed the reforms last month. Officials hope they will help discourage young people from starting to smoke. The new legislation will require tobacco companies to cover 65% of the front and back of their packages with health warnings, including graphic photos, including of diseases caused by smoking.
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Afternoon Watchlist:

13:55 US Reuters/Michigan Consumer Sentiment Index Preliminary

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Monday's Key UK Corporate Events

Regenersis Interim Results
Smart Metering Systems Full Year Results
Global Ports Investments Full Year Results

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Monday's Key Economic Events

00:01 UK Rightmove House Price Index
03:00 Germany German Buba President Weidmann speech
04:00 China FDI - Foreign Direct Investment
10:00 EU Consumer Price Index
11:00 UK CBI Industrial Trends Survey
12:30 US NY Empire State Manufacturing Index
13:15 US Capacity Utilization
13:15 US Industrial Production
14:00 US NAHB Housing Market Index

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By Steve McGrath; steve.mcgrath@alliancenews.com; @stevemcgrath1

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