Bytes Group looks to raise £455m in London stock market float
Software firm Bytes Group is aiming to raise as much as £455m from its initial public offering as it cashes in on the rise in home working.
The Surrey-based company today said it will sell up to 172m new shares at a target price range of between 240p and 290p per share, giving it maximum total takings of £455.4m.
The listing, set to take place on or around 11 December, will give it a market capitalisation of up to £692.3m.
Bytes Group last month unveiled plans for the float, which will see the firm demerge from its South African parent company Altron and pursue a primary listing in London and a secondary listing on the Johannesburg Stock Exchange.
The proceeds of the IPO will be used to cover expenses and pay back the cash due to Altron and its shareholders in connection with the demerger. Bytes will not retain any of the money.
Bytes, which employs more than 650 people in the UK, focuses on security and cloud products. It boasts a number of blue-chip customers and is one of Microsoft’s largest partners in the country by revenue.
The company has grown sharply over recent years, cashing in on the ongoing shift to cloud computing as well as a rise in home working due to the coronavirus pandemic.
Bytes has said a listing in London will allow it to build on this growth with an enhanced market profile.
“With an exceptional set of colleagues and a growing customer base, we believe that being a listed company will provide us with a strong platform for our next stage of development,” said chief executive Neil Murphy.
Bytes has hired Numis Securities to act as sole sponsor, financial adviser and bookrunner on the float.