Retail investors excluded from Polypipe float
BRITISH plastic piping manufacturer Polypipe is the latest company to announce its plans to float on the London Stock Exchange, as it looks to take advantage of the UK construction market recovery.
Around half of the company’s share capital will be up for grabs, but like online food takeaway business Just-Eat, which announced its plans to float on Monday, Polypipe will exclude retail investors from the offering.
Dr Tim May, chief executive of the Wealth Management Association, criticised the choice to exclude private investors at the time of the Just-Eat announcement.
The float, which is expected to take place in April, will not issue fresh capital but gives shareholders the opportunity to sell some of their existing investment. It has been speculated that the deal will value the company at around £400m.
Polypipe, which is the largest UK manufacturer of plastic piping systems, reported adjusted core earnings of £54m in 2013, up from £49.4m in 2012. “We feel confident about a recovery in the UK construction market, like most companies in the sector,” chief executive David Hall told City A.M. “It’s a good time for people to invest.” Hall said that Polypipe is now looking for acquisition targets in the carbon efficiency and water management sectors that could provide synergies with the existing business.
BEHIND THE DEAL
MOELIS & CO | MARK AEDY
1 When he’s not working on deals, Aedy is an ardent triathalete. He has already signed himself up for four races this year.
2 He is a managing director and head of the Europe, Middle East and Africa and Asia investment banking at Moelis. He has over 30 years experience , having previously held investment banking roles at Bank of America Merrill Lynch and Deutsche Bank.
3 He supports Pilotlight, a charity that arranges for senior businesspeople to coach small charities with a turnover under £3m to become more economically efficient.
Also advising…
Liam Beere is another key player on the Moelis team. Beere has advised companies from a broad range of industries on a wide variety of complex transactions including domestic and cross-border mergers and acquisitions, demergers, joint ventures, corporate restructurings and private divestments. The key members of the Numis team, also sponsor and bookrunner, are Heraclis Economides, Alex Ham and Richard Thomas.