ADVISERS to Infinis, the renewable energy group owned by Guy Hands’ Terra Firma, were yesterday said to be guiding potential investors to the mid-point in the price range for the group’s forthcoming flotation.
As the closing date arrived for the retail offer, it looked as if the shares will be priced at no more than 285p each, giving the stock a 6.5 per cent yield for income hungry investors. There was still a possibility the shares could be priced even lower when the offer closes for the institutional investors later today.
Terra Firma is reducing its stake in the group, which owns 147 power generating plants in the UK, to around 65 per cent as part of the transaction.
Retail investors are expected to take around 15 per cent of the offer, even though Infinis is not a widely known name.
Barclays, one of the lead banks on the issue, has been effectively encouraging retail alongside Solid Solutions, in a number of new issues including Direct Line and Royal Mail.
“Infinis offers decent growth prospects as well as income,” Jim Dolan, retail broking director at Beaufort Securities said yesterday. “My feeling is that this one will be priced to get away,” he added.