| New Star float valued at £704 million |
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Fund manager New Star announced on Tuesday that in its initial public offering it will price its shares at 225 pence, which gives the group a market capitalisation of nearly 704 million pounds.
14.7 per cent shares representing the company were sold as part of the offer. New Star's executive chairman and founder, John Duffield will keep 16 percent of his firm’s shares which are valued at £112 million. There was an "excellent response" from investors, according to him.
For the IPO, UBS is sole bookrunner and global coordinator, while Citigroup Global Markets is joint lead manager. Goldman Sachs, HSBC and Putnam Lovell NBF Securities are acting as joint financial advisors.
The stock is due to start trading at 8 a.m. on Tuesday is reportedly one of the largest listings this year on Alternative Investment Market. New Star had to list on AIM because it does not qualify to join the main market as it does not have a long enough trading track record.
New Star has 277 employees who own 60 per cent of the company. They will receive shares worth £420 million. None of the employees are allowed to sell more than 25 per cent of their shares immediately under the terms of their contracts. They will although be able to offload shares in each of the next four years.
The New Star was launched in 2000 following Mr Duffield’s sale of his management business, Jupiter, to Commerzbank. It will have assets under management totalling £12.9 billion by this year end. The operating profits in the first half of 2005 were £17.1 million up by 60 per cent over the same period in 2004.
The float is said to have turned about 50 of its employees into millionaires, which includes among others a receptionist.
The company has promised a minimum dividend of 3 pence, which is equal to a yield of 1.3 per cent.
Meanwhile, Sir Dominic Cadbury, former chairman of Cadbury Schweppes, has joined New Star as its deputy chairman and senior non-executive director.
Posted
on : Wed, 09 Nov 2005 01:35 GMT | Investments News
By : Chris Rowe
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