Managed services provider Phoenix IT Group Ltd has set the date on which it plans to make its public listing on the London Stock Exchange.
Northampton, UK-based Phoenix said the expected commencement of conditional dealings for the initial public offering would be November 11, while the unconditional dealings would begin on November 16.
The issue price will be set between 235 pence and 290 pence per share, which will give Phoenix a market capitalization of 144.4 million pounds ($261.4 million) based on the mid-point value of 262.5 pence. The company plans to issue 11.43 million new shares and 27.9 million existing shares. It plans to raise some 26.5 million pounds ($48 million), which it said will be used to reduce the company’s debt and for general corporate purposes.
CEO Nick Robinson stands to cash in from the listing, as he is planning to divest one third of his 50% stake in the company, through which he will raise 24 million pounds ($43.4 million) in cash based on the anticipated market value of 144.4 million pounds ($261.4 million). Phoenix’s other major investor, private equity firm Alchemy, is expected to sell the 44% stake it acquired in 1997. This is likely to generate some 63.5 million pounds ($115 million) for Alchemy based on the same expected market valuation.
Phoenix provides a range of managed and network services, data center hosting, systems management, and help-desk services to IT services clients including LogicaCMG, IBM, and Syntegra.
In its most recent financial year ended March 2004, Phoenix made an operating profit before amortization of 10.8 million pounds ($19.5 million), compared to a profit before amortization of 9 million pounds ($16.3 million) in 2002, on revenue that grew 10.6% to 58.3 million pounds ($105.5 million), of which 50.6 million pounds ($91.6 million) was from continuing operations.
At the same time, Phoenix appointed Peter Bertram, former CEO of Azlan Group, as non-executive chairman, and John Sussens, former group MD of Misys, as non-executive director.