Equiniti, the payments technology provider, has added to the current flurry of IPO activity, announcing the price range for its shares will be between 165p and 200p.
The price would give Equiniti an initial market capitalisation of between £495m and £600m: the company estimates the flotation to net around £135m, which it plans to use to pay off some of its debt.
The company plans to commence conditional dealings on the London Stock Market on 27 October.
The group, which works with about 70 FTSE 100 companies, along with several government departments, said it was aiming for initial dividends of approximately 30 per cent of profit after tax.
Guy Wakeley, the chief executive of Equinti, said he was “pleased” with the investor response to the IPO plans, which are “a natural fit for the business” and its customers.
He told City A.M. the company is steaming ahead with the IPO “now the markets are open, investors are open to it, you can see others there too: the window of opportunity is here. And, the business is performing very well.
“Our company provides IPO services for FTSE 100 companies and it's important to be in the same markets as our customers, shoulder to shoulder with them.
We've had to be very sensitive to market volatility, but we've listened to investors and they've told us there's demand, the time is here.”
Private equity group Advent, which currently controls the group, has said it will subscribe for £75m-worth of new shares, which it will use to help repay debts after the offering.
Chairman Kevin Beeston said:
Since 2007 Advent has been a supportive long-term investor in Equiniti and we are therefore delighted that they will continue to be our largest shareholder. Their subscription for £75m of additional shares acknowledges the growth prospects that lie ahead for the business. Following the transformation Equiniti has undergone in recent years, the considerable investment made in our proprietary technology platform and the successful acquisition strategy, we share their optimism.
The minimum offer for retail investors to get in on the deal will be £1,000.