LONDON (Alliance News) - Ventilation products supplier Volution Group PLC Wednesday said it plans to float on the London Stock Exchange's main market later this month.
Volution, a supplier of ventilation products to the residential construction market in the UK, Sweden and Germany, said it hopes to raise gross proceeds of around GBP72 million from issuing new shares, part of which it will use to repay existing debt and settle fees and expenses, with the remainder of the proceeds retained for general corporate purposes.
"Volution Group has a lean, efficient and scalable operation and has delivered consistently strong financial performance despite challenging conditions in the UK and Swedish construction markets," said Chief Executive Ronnie George in a statement.
The company said that following admission, it expects to have around GBP55 million outstanding under its new term debt facility, commitments of GBP20 million under an acquisition facility, GBP13 million under a revolving credit facility, and cash of approximately GBP7 million.
It said the IPO will also give some existing shareholders a chance to sell down their holding, and realises part of their investment in the company, including executive directors and the company's principal shareholder Windmill Holdings BV, an affiliate of funds managed by TowerBrook Capital Partners LP.
The group operates through two divisions - the Ventilation Group and Torin-Sifan.
The Ventilation Group supplies ventilation products for residential construction applications in the UK, Sweden, Norway and Germany and ventilation products for commercial construction applications in the UK.
Its Torin-Sifan division supplies motors, fans and blowers to manufacturers of heating and ventilation products for both residential and commercial construction applications in Europe.
In the financial year ended July 31, 2013, on a pro-forma basis, the group would have achieved revenue of GBP127.9 million, a gross margin of 47.1%, and adjusted earnings before interest, taxes, depreciation and amortisation of GBP28.9 million, Volution said.
Volution said it initially intends to target a dividend of approximately 30% of the company's adjusted net income for each financial year.
Canaccord Genuity Ltd is acting as sole sponsor and joint bookrunner for the IPO, and Liberum Capital Ltd as joint bookrunner.