CT Automotive will debut on London’s junior stock market with a market capitalisation of around £75m this week, after raising £33.6m in an initial public offering (IPO).
The company supplies parts for the interiors of cars, such as cup holders, air vents and dashboard panels. Nissan, luxury brands including Bentley and Lamborghini and electric car manufacturers are some of its clients.
The car supplier sold almost 22.9 million shares at 147p per share and is floating a 45 per cent stake in the company.
The funding, the company said, would help repay company debts and unlock additional cash to invest in its expansion.
Founder and chairman Simon Philips said he was “thrilled” about the company’s listing on the Alternative Investment Market (AIM), as it marked an “important next chapter” for the firm which was founded over 20 years ago.
The move comes as the automotive industry continues to battle global supply chain issues affecting production.
Last week it was reported that Volkswagen may be forced to reduce its production forecasts for 2022 as a result of ongoing semiconductor issues.
After reducing its 2021 forecasts from 9.3 to 9 million vehicles produced, the German car marker could see deliveries fall to 8 million next year, business magazine Manager Magazine reported last week, citing sources familiar with the matter.
Philips will hang on as the largest shareholder of CT Automotive, which operates in China, Turkey, the Czech Republic and the UK, even after the float on AIM.
Shares will begin trading on Dec 23 – in one of the last few listings of 2021.