John Laing has priced its shares at the very bottom of its range ahead of the initial public offering it announced last month.
The UK developer said the offer price had been set at 195 pence a share, the lower limit of its initial 195 pence to 245 pence bracket. The float will allow the company to raise £130 million (€176 million; $200 million) and give it a market capitalisation of £715 million, short of the £865 million it would have achieved if its shares had hit their indicative price cap.
The transaction will generate £118.9 million in proceeds for London-based asset manager Henderson Equity Partners (Henderson), which currently owns the business through its £573 million PFI Fund II. The firm will retain 65.1 percent of its stake in the company upon completion of the IPO, subject to a 180 days lock-up.
Henderson could reduce its stake down to 59.9 percent should it decide to exercise the over-allotment option.
John Laing plans to use the proceeds to support its international expansion efforts and “fund new investment commitments”, it said last January. Its portfolio of 44 infrastructure investments was valued at £781 million as at 30 September.
The group also earns fees from managing John Laing Infrastructure (JLIF) and John Laing Environmental (JLEN), two listed funds with combined assets of £965 million. Both have first offer agreements in place for relevant future John Laing projects.
JLIF shareholders last August voted to approve a change in the vehicle’s policy that allows it to have up to 30 percent of its capital invested in assets under construction – up from 15 percent – as well as up to 10 percent in non-public-private partnership assets.
JLEN also has the possibility to acquire up to 15 percent of non-operational assets.