Britain’s biggest clay brick manufacturer Ibstock said on Monday it plans to raise 100 million pounds ($152.23 million) through a listing on the London stock Exchange as it expects to benefit from an increase in homebuilding.
Shares held by private equity fund Bain and members of the group’s management will also be sold, the company said in a statement. Ibstock is expected to have a freefloat of around 25 percent after the listing.
The gross proceeds from the sale will allow the group, which has a 40 percent market share in Britain’s clay brick market, to refinance existing debt. The company has a 24 percent market share in the Northeast and Midwest U.S. markets through subsidiary Glen-Gery.
“With UK brick demand now exceeding current manufacturing capacity, a significant opportunity has been created for a UK manufacturer to expand capacity,” Ibstock CEO Wayne Sheppard said in a statement.
The company is expected to list in October, following which it will be eligible for inclusion in FTSE UK indices. Ibstock generated net revenues of 395 million pounds and adjusted core earnings (EBITDA) of 87 million pounds in the 12 months to June 30, 2015.
JPMorgan and UBS have been appointed global coordinators for the sale, with Barclays and Numis acting as joint bookrunners. Rothschilds is financial adviser to the company.