Sanne share price rises 10 per cent on its first day of trading after IPO
Shares in corporate administration provider Sanne Group surged on their debut yesterday, opening at 221p per share, a 10 per cent premium on its listing price.
The company raised £142m when it floated last Friday in a move which valued the company at £232m. Previous majority holder Inflexion Private Equity said the initial public offer (IPO) had generated a realised and unrealised return of 3.7 times its original investment, making £113.6m from the sale alongside executive directors. The remaining £28m has been earmarked for debt repayments and general working capital.
Inflexion still holds an 11 per cent stake in the firm, with senior management retaining a 23.6 per cent share. Sanne’s chief executive, Dean Godwin, said the IPO would allow the company to accelerate its growth plans by enabling it to attract and retain high quality staff.
Garry Levin of Investec who worked on the float described it as a “perfect” IPO, adding, “you want to be about 10 or 11 per cent up so we are delighted with the first day closing price”.
Shares in the newly listed company closed at 223p per share.