(Alliance News) - Auction Technology Group PLC said Wednesday it has set its initial public offering price at 600 pence per share, giving the company a market capitalisation of GBP600 million upon listing.
The online auction operator is offering up to 41.2 million new shares to raise GBP247.4 million gross for the company. Additionally, selling shareholders will offer 4.2 million existing shares for sale.
The total shares being offered will represent up to 45.5% of the total.
Conditional dealings on the London Main Market will start next Tuesday, with unconditional dealings following on February 26.
Auction Technology also said funds managed by Blackrock have entered a cornerstone agreement to invest GBP25 million in the IPO. The new deal raises total cornerstone agreements to GBP125 million.
Chief Executive Officer John-Paul Savant said: "With a 50-year track record, proven commercial model and leading positions in a market supported by significant structural growth trends, we believe that ATG will thrive as a listed business. We are delighted with the high-quality investor support we have had to date which reflects this potential.
"An IPO of Auction Technology Group will support the continued momentum of the business and our focus will remain the same - enhancing our services for auctioneers and bidders and driving long-term sustainable growth."
The company said it will use about GBP115 million of its proceeds to pay off debt, which it believes will give it the balance sheet flexibility to pursue opportunities in line with its strategy, such as future acquisitions.
The remaining gross primary proceeds of about GBP132.5 million will be used to repay its preference shares held by some existing shareholders.
Auction Technology has operated since 1971, starting with the publication of Antiques Trade Gazette. It now operates auction platform for curated online auctions in three industry verticals: industrial & commercial equipment, art & antiques, and consumer surplus & retail returns.
Auction Technology's listing is one of about 20 IPO announced or completed on the London Main Market and AIM so far in 2021. Biggest so far have been boot maker Dr Martens, with a GBP3.70 billion market cap at its IPO price, and online greeting cards seller Moonpig Group, with a GBP1.20 billion valuation upon listing.
On Tuesday, online retailer Virgin Wines UK announced plans for a market float on AIM, while miner Cornish Metals began trading on the junior market.
By Paul McGowan; paulmcgowan@alliancenews.com
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Moonpig Gr (MOON)
Cornish Metals. (CUSN)