HSS Hire Group, based in the UK, has announced it will proceed with an IPO (initial public offering).
The company intends to raise UK£103 million from its listing on the London Stock Exchange, which will provide greater working capital to drive growth in the business.
The issue of new shares will allow shareholders to sell their investment in the company, although existing shareholders are expected to remain the group’s largest following completion of the IPO.
Admission to the stock exchange is set to take place in February 2015. Following that the company will be eligible for inclusion in the FTSE UK indices.
There is then expected to be a free float of at least 25% of the company’s share capital. An over-allotment option will allow 15% more shares than originally planned to be made available by the main shareholders and Standard Life.
During the group’s last financial year, ending 27 September, revenue grew 17% year-on-year, while adjusted EBITDA was up 19% compared to the same period. HSS’s market share in the UK increased from 3.6% to 4.7% firing that time, said the company.
In connection with the IPO, HSS also announces the appointment of Neil Sachdev as deputy independent non-executive chairman, and Amanda Burton and Douglas Robertson as independent non-executive Directors. “These individuals bring significant additional experience to the HSS board,” said the company.
“By focusing on the more attractive and less cyclical ‘maintain’ and ‘operate’ segments of the market and building a sophisticated distribution network that has enabled a step change in availability and utilisation, we have established a track record of delivering industry leading growth and returns on assets,” said Chris Davies, HSS chief executive officer.
“Having built a well-differentiated market position and a scalable business model underpinned by capital efficiency, we have an exciting opportunity ahead of us as we implement our growth plans. A public listing will put the business on the best footing to maximise our potential as the recovery in our markets gains momentum, enabling us to scale our model faster and accelerate our growth.”