News Column

Daily Mail, London, market report column

June 11, 2014

By Geoff Foster, Daily Mail, London



June 11--Sir Philip Green's long-awaited return to the stock market after 22 years should be a resounding success.

Books closed yesterday on the IPO of MySale, the Australian fashion flash sale site, in which the Topshop boss holds a 25pc stake through his wife Tina's offshore investment firm Shelton Capital.

Priced within a range of 240p to 260p, valuing the company at up to pounds sterling 400m, dealers heard that the offer was about five times covered, suggesting the stock will be priced at, or very near, the top of the range.

'It certainly looks hot to trot,' said one fund manager. 'Sir Philip Green's mere presence on the share register of any company would attract investors who know that he would not back a loser. He must be super confident about MySale's prospects and it's a fair bet too that he has persuaded some of his high-roller friends to have a nibble.'

MySale sells branded fashions and accessories and runs 'flash sales' of discounted items on behalf of fashion labels. It holds 60 flash sales a day servicing 10.5m members.

Green has a merchandising agreement to supply the company with excess inventory from his Arcadia High Street empire which includes BhS, Miss Selfridge and Wallis. Once the flotation price is fixed by its ubiquitous adviser team of Zeus Capital and Macquarie Capital, dealers expect MySale to start trading by the end of this week or early next.

Confirmation came yesterday that B&M Retail is coming to the market at between 260p-280p, valuing the Liverpool retailer at pounds sterling 2.8bn.

Roadside assistance company AA last week confirmed it was seeking a listing which will value it at pounds sterling 1.38bn. The news has put shares of Cenkos Securities in the fast lane as the Tokenhouse Yard, London-based stockbroker has been given the role of sole co-ordinator and bookrunner to AA. Cenkos has said that a successful flotation would have a 'significant' impact on current year revenues. Shares closed 6.5p better at 206p.

Sporadic bouts of light profit-taking dragged the Footsie 38 points lower before a late rally left the close only 1.45 points off at 6,873.55. Record-breaking Wall Street traded 8 points off at the outset.

Peroni brewer SABMiller jumped 182.5p to 3460p as professional punters continued to respond to persisting talk of a mouthwatering bid from Budweiser-to-Stella Artois group Anheuser Busch.

Prevailing Medtronic of the US takeover talk continued to put a spring in the step of replacement hip and knee group Smith & Nephew, 25p higher at 1100p. Intensifying rumours that private equity players Blackrock and Warburg Pincus are stalking aesthetics and skin care company Sinclair IS Pharma helped it rise 3.5p to 33.5p.

Legendary investor George Soros recently spent pounds sterling 9m taking his stake above 5pc and dealers believe he could have snapped up some more stock yesterday when a overhang was cleared.

Sinclair's attraction is that it owns Silhouette, a company that has found a replacement for botox. Silhouette Soft is a pounds sterling 1,200 anti-ageing treatment that uses dissolvable thread to beat wrinkles. Any predator will have to pay 45p-plus a share to stand a chance of gaining control.

Investors hung up on BT, down 9.6p at 396.5p, after rival BSkyB confirmed it will be launching a new dedicated channel for European football which will show 600 European games next season. The channel will be free to existing Sky Sports subscribers and will be launched on August 12 and comes with an offer of free broadband for two years to customers signing up for the channel.

BSkyB has retaliated after losing out to rights for the Champions League and Europa League from 2015/16 to BT Sport. Analysts said its bad news for BT because it takes a lot away from the attraction of its own deal to new subscribers of free Sports with broadband. BSkyB eased 7p to 869p.

Sepura, the maker of radio equipment for the emergency services, rose 3.5p to 142.5p on record full-year results. It expects 2015 revenue growth to be 10pc with earnings per share growth of 15pc.

CML Microsystems, on the other hand, plummeted 123p or nearly 23pc to 414.5p after the maker of electronic chips from flash memory drives to police and military radios, reported in-line annual results but a slow-down in growth in the second-half which will have an impact on 2015 numbers. Cenkos expects revenues to fall from pounds sterling 24.4m for 2014, to pounds sterling 21m for 2015.

No such problems at Tristel which raised its full-year guidance again after a stronger-than-expected fourth quarter. Shares of the maker of contamination control and hygiene products jumped 11p to 75.5p.

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(c)2014 Daily Mail (London, )

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Source: Daily Mail (London, England)


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