The London Stock Exchange’s main market is this week set to become a little brighter, but also a bit smellier, thanks to two new floats.
Luceco, an LED lighting and portable power manufacturer, and waste management company Biffa both confirmed this morning they plan to float on Thursday.
While Luceco’s initial public offering (IPO) – the plans for which emerged last week – appears to have been relatively straightforward, Biffa’s float proved difficult, and the company had to reduce its base price from 220p to 180p thanks to difficult market conditions.
Luceco’s offer price has been set at 130p, valuing the company at around £209m. The company, backed by Epic Private Equity, will raise £26m from the float.
Chief executive John Hornby said:
This IPO represents a significant landmark in Luceco's history and I am delighted to welcome our new shareholders to the register. We believe that listing on the London Stock Exchange will help boost the group's profile, whilst also giving us the financial and operational flexibility to maintain our strong growth rate and pursue our development strategy to create further value for investors.
City A.M. reported on Saturday that Biffa would announce its 180p-per-share float, valuing the company at £450m, today and aim to list on Thursday.
The announcement comes after the company battled to win enough City interest in its shares on Friday.
This was at the end of a week in which Pure Gym, TI Fluid Systems and Mountain Warehouse pulled flotation plans. It also emerged over the weekend that technology giant Misys has cut the value of its float.
Biffa chief executive Ian Wakelin said:
A return to the London Stock Exchange is a significant milestone for Biffa and a testament to the hard work of all our staff. This listing is an endorsement of Biffa's business model, strategy, track record and prospects.