(Adds CEO comment)
LONDON (AFX) - Hogg Robinson PLC priced its initial public offering at 90
pence per share, giving the UK-based travel company a market capitalisation of
275 mln stg.
Chief executive David Radcliffe said the company raised 180 mln stg from its
flotation on the London Stock Exchange.
"We are an acquisitive company," said Radcliffe, "and we will use part of
the flotation capital to fund acquisitions." He added that the rest of the money
would be used to reduce company debt of 130 mln, as well as reduce the pensions
deficit to 45 mln.
The offer comprises 200 mln new shares and over 44.44 mln existing shares,
representing 80 pct of the company's enlarged issued ordinary share capital and
implying an offer size of 220 mln stg. The shares have been placed with
institutional investors.
SVG Capital PLC, the main investor in private equity firm Permira, said
Permira sold 44 pct of its stake in the company at the flotation. The value of
the partial sale for SVG was 18 mln stg.
On flotation, the value of SVG's remaining holding in the company will be
6.4 mln stg.
Conditional dealings in the shares started today and unconditional dealings
are expected to begin at 8.00 am on Thursday.
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