HgCapital is running the stock market gauntlet despite choppy conditions that have seen Palamon cancel an IPO and ABN AMRO Capital receive less than its initial aims with Jessops.
Raymarine, an electronic marine products maker, is to float in London in early December as HgCapital sells down its position in the business. The company is expected to achieve a market capitalisation of £125m, but the size of the deal will not be decided until later in the process.
HgCapital currently owns 70% of the company and is expected to significantly reduce that stake significantly. The remaining 30% is held by management, which is also expected to sell a portion of its holding. Research is due out this week, with roadshows beginning in a fortnight. The offer will close in mid-December.
Palamon cancelled the IPO of TeamSystem, an Italian software company, after investors failed to come up with sufficient interest for in its 67.4% stake. Citigrpoup and Intesa had been bookbuilding for two weeks, but bankers away from the deal said institutional accounts were valuing the stock some 20% below the €8.33–€10.00 range.
ABN AMRO Capital had aimed to float Jessops in the 185p–200p range, but after encountering little interest from institutions it had to settle for 155p, valuing the company at £160m. The float totalled around £120m, of which £97m went to the company. The funds will help
pay off existing debt and cover expenses related to the offering.