News Column

Shoe Zone Prices AIM IPO As Allied Minds Says It'll List On Main Market

May 20, 2014

Steve McGrath



LONDON (Alliance News) - Footwear retailer Shoe Zone PLC Tuesday priced its initial public offering at 160 pence a share, meaning it will be valued at about GBP80 million when it lists on AIM, as US-focused science and technology company Allied Minds added its name to the IPO pipeline for the London Stock Exchange's main market.


Shoe Zone confirmed it planned to list last last month, the latest in a string of retailers that have come to market, or are planning to do so this year.


However, after a buoyant start for many offerings earlier in the year, several newly listed stocks have struggled to make gains in recent weeks due to growing fears that valuations in some sectors, notably technology, were getting overheated.


Card Factory PLC, which started unconditional dealings Tuesday, had traded below its offer price sine conditional dealings started last week. Its stock was down 0.3% at 200.5 pence Tuesday.


When Shoe Zone first said that it planned to float, a spokesperson said the IPO would value the company at between GBP90 million and GBP100 million.


The company said that it will have 50 million shares in issue when it is admitted to trading on Friday, and a free float of 44.5%. The money raised in the IPO placing will all go to the selling shareholders, Chief Executive Anthony Smith and Chief Operating Officer Charles Smith, who are placing 22.5 million shares through their Shoe Zone Group Ltd holding company.


"We have secured a high quality shareholder base and we would like to welcome these new shareholders to the register and look forward to keeping them updated on our progress," Smith said in a statement.


The Leicester-based company has been trading for over 30 years, when the Smith family bought Bensonshoe back in 1980, although it changed its trading name to Shoe Zone in 2000.


Numis is acting as financial adviser, nominated adviser and broker to the company.


Separately, Allied Minds said it expects to list on the main market in London in June.


Allied Minds tries to develop and commercialise science and technology innovations from US universities and US federal government research institutions. It forms, funds and manages start-up companies to undertake research and product development towards commercialisation of scientific research and innovations.


It currently has 18 subsidiary businesses in sectors including medical devices, biologics, pharmaceutical compounds, cyber security, wireless communications, medical diagnostics, semiconductors and food safety.


"The funds raised will enhance and accelerate our ability to commercialise innovative science and technologies from the world's largest R&D investor, the US. Through our extensive partner network, we have access to a wide range of potentially transformative technologies," Chief Executive Chris Silva said in a statement.


It said it expects to raise about USD140 million, or GBP83 million, in the IPO.


Jefferies International Ltd is acting as bookrunner and sponsor.







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Source: Alliance News


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