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LONDON (Alliance News) - Publishing company Auto Trader Group PLC and media investment vehicle Zegona Communications PLC both started dealings in London on Thursday, with shares in both pushing higher.
Auto Trader set its initial public offering offer price at 235 pence per share, giving the company a market capitalisation upon admission to the London Main Market of GBP2.35 billion. The company raised GBP437 million in net proceeds from the offer, which will comprise 590 million shares in total. The selling shareholders, comprising two entities owned by Apax Europe VII, will received gross proceeds of GBP926.2 million from the offer.
Auto Trader added that, subject to satisfying the appropriate criteria, the company may be eligible for inclusion in the FTSE UK Index Series in the June quarterly review. Its market capitalisation is comfortably large enough to make it eligible to join the FTSE 250 index at the next quarterly review.
Bank of America Merrill Lynch and Deutsche Bank acted as joint global coordinators and joint bookrunners on the deal.
Shares in Auto Trader were up 13% in early trade Thursday to 264.25 pence.
Zegona, a company set up with a strategy of acquiring and operating European telecommunications, media and technology businesses, also saw its shares rise on its market debut.
Shares in the company were up 14% to 137.00 pence, having floated at 120 pence. The company set pricing for the issue on Monday, issuing 25 million shares at 120 pence to raise GBP30 million.
Zegona was established by Chairman and Chief Executive Eamonn O'Hare, who is the former chief financial officer of Virgin Media Inc, alongside Chief Operating Officer Robert Samuelson, who was the executive director of group strategy at Virgin Media Inc.
It is backed by Marwyn Value Investors LP and Woodford Investment Management LLP, the company headed by prominent City fund manager Neil Woodford.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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