DX Group is looking to deliver a £170m return to the stock market
THE RISING confidence in equity markets has delivered another float, as parcel service DX Group seeks to raise £170m in what is set to be one of the largest initial public offerings on London’s Alternative Investment Market this year.
DX, which delivers mail as well as parcels and freight, first floated in 2004 but was taken private two years later. It plans to use the cash this time around to pay off debt and fund further expansion, particularly in its logistics business.
The float comes four months after Royal Mail was part-privatised in a heavily oversubscribed IPO that valued the firm at £3.3bn.
DX, originally part of Hays, is owned by a fund run by Arle Capital Partners, whose predecessor Candover bought DX in 2006. It posted revenues of £305.7m in the year to 30 June, a rise of 48 per cent that was fuelled by DX’s Nightfreight unit. Operating profit was £34.4m.
ADVISERS DX GROUP’S FLOAT ON AIM
TIM METCALFE
CO-CHIEF EXECUTIVE
ZEUS CAPITAL
DX Group is working with advisers at Zeus Capital on its £170m float on the Alternative Investment Market.
DX and Arle, its private equity owner, spent several months weighing up options for the firm before settling on a float late last year.
Demand from institutional investors is said to be strong ahead of a pricing next week and the shares hitting the stock market on 27 February.
The flotation is the latest in a growing IPO caseload for investment bank Zeus Capital, which is acting as nominated adviser and broker.
Zeus brought Conviviality to the junior stock market last July, raising £64m for the firm in a twice oversubscribed placing. The firm has also helped to float Safestyle UK and CentralNic in recent months, and is set to raise £16.5m for 4D Pharma next week.
Joint chief executive Tim Metcalfe, who is leading the DX float, joined the firm last year from Northland Capital Partners. Also on the IPO are co-chief John Goold, head of PLC advisory Ross Andrews and Dominic King, who leads Zeus’ Birmingham office.
Buchanan is acting as financial PR adviser.