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LONDON (Alliance News) - Security software and hardware developer Sophos Group PLC Wednesday announced plans to list on the London Stock Exchange, as did Irish housebuilder Cairn Homes PLC, whilst shares in musical instrument and equipment online retailer Gear4music (Holdings) PLC started trading on AIM.
Sophos said it expects to raise around USD100 million in its initial public offering, with admission expected in early July 2015. Immediately following admission, it expects to have a free float of at least 25%. It will use the proceeds to reduce its overall debt and to provide it with greater flexibility for future growth, it said.
It plans to list on the premium segment of the official list of the London Stock Exchange and following admission, Sophos says it will be eligible for inclusion in the FTSE 250.
Sophos produced earnings before interest, tax, depreciation and amortisation of USD101.4 million for the year to end-March, on billings of USD476.0 million. Its free cash flow was USD65.3 million for the year.
"Bringing Sophos to the public markets will enable us to access capital, improve our global brand and enhance our ability to enable enterprises around the world, of any size, to deploy a simple and effective security solution," said Chief Executive of Sophos Kris Hagerman in a statement.
JP Morgan Securities PLC and Morgan Stanley & Co will act as joint global co-ordinators and joint bookrunners, with Deutsche Bank AG and UBS Ltd also acting as joint bookrunners, and Pacific Crest Securities and Numis Securities Ltd acting as co-lead managers.
Cairn Homes plans to list on the main market of the London Stock Exchange next Wednesday. It is planning to raise between EUR350 million and EUR400 million in its initial public offering at EUR1 per share.
The company said there will be a separate subscription for shares by members of its board of directors and an investment of around EUR29 million in equity and cash by the founders of Cairn Homes.
Cairn Homes plans to use the proceeds to cover the consideration and other costs and expenses payable in connection with an acquisition, to make further acquisitions, to develop sites and potentially to repay an outstanding loan entered into by Emerley Properties Ltd. It has contracted to acquire five sites in Ireland, conditional upon admission, including the Parkside site from Emerley Holdings.
"Cairn Homes' IPO will give our company the platform for a new and sustainable approach to home building in Ireland. We are a well-capitalised business, governed by a strong independent board, with an experienced management team committed to constructing the highest quality houses and apartments for our customers," said Chief Executive Officer Michael Stanley in a statement.
Gear4music was admitted to AIM Wednesday, raising GBP9.0 million after expenses in its initial public offering of 7.2 million shares at 139 pence each.
Shares in the company are trading up 0.7% at 140 pence Wednesday morning.
The musical instruments retailer plans to use the proceeds to develop its commerce platform, invest in marketing, increase its range of products, pay down debt and open a flagship showroom in London.
"We have been thrilled by the investor enthusiasm and support for our admission to AIM and are very excited about beginning the next chapter in our development. I would like to take this opportunity to welcome our new shareholders and look forward to updating them and the wider market on our continued progress as we look to build on our strong track record of growth," said Gear4Music Chief Executive Officer Andrew Wass in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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