CAMBIAN, the provider of specialist behavioural health services, yesterday priced its shares at the bottom of a range of between 225p-290p, valuing the group at around £400m.
The shares begin conditional trading today on the London stock market.
Most groups floating on the market since the New Year have issued shares towards the middle or top end of a designated price range but conditions in the new issues market have become a bit choppier over the past few days.
The group announced its intention to float on Budget Day and has since proceeded to keep an ultra low profile.
Cambian was founded in 2004 and has grown to become a significant partner to the UK government. The group includes the businesses of Cambian Healthcare, Cambian Education, Care Aspirations (trading as Cambian Learning Disabilities) and Advanced Childcare.
Advanced Childcare is a potential sore point for the group because a recent Ofsted survey highlighted that only one third of its homes were classified as good or outstanding.
The group does claim to be doing well in terms of quality control and compliance, with 97 per cent of its facilities achieving a rating of four ticks out of five from the Care Quality Commission of 97 per cent against a UK market average of 91 per cent.
Chief executive Saleem Asaria will sell part of his shareholding in the flotation but will be held to a lock-up period of 545 days in respect of the remainder of his stock. The precise details of his intended share sales and those of private equity owners G1 Partners will be confirmed later today.
The group made a profit of £7.8m in its last year on revenues of £214m. Cambian derives 62 per cent of its revenue from local authorities, 37 per cent from clinical commissioning groups and one per cent privately.
BEHIND THE DEAL
NUMIS | ALEX HAM
1 Alex Ham joined Numis in 2005 as a graduate and became co-head of corporate banking in 2012, aged just 29.
2 As well as Cambian, Ham is advising Polypipe on its initial public offering this week. He also led the float of Crest Nicholson and Foxtons for Numis last year and AO World last month.
3 In between raising two young children Ham has won awards including City A.M.’s Rising Star of the Year award, and Financial News’ 40 under 40 rising stars in investment banking.
JP Morgan, led on this deal by Greg Chamberlain, continues its strong IPO run of 11 floats this year. James Taylor, James Mitford, Charles Pretzlik and Juha Anjala are also working with Cambian. At Numis, the team also includes Michael Meade, James Black and Tom Ballard. Rothschild is on board as financial adviser.