Thursday 16 January 2020 2:24 pm

Smart meter firm Calisen confirms £1.5bn float plans

Smart meter firm Calisen today confirmed its intention to float on the London Stock Exchange next month with the goal of raising £300m.

The float will value the company at around £1.5bn.

The energy company, which is backed by private equity firm KKR, said it would use the funds to pay down debt, support future growth, to fund existing and new contracts relating to the smart meter roll-out in the UK, and for other general corporate purposes.

Calisen said it is targeting a free float of at least 25 per cent of its share capital and said it intends to offer a further 15 per cent of the  total offer size to certain existing shareholders in an over-allotment option.

The offer will comprise of new shares which are expected to raise approximately £300m and an offer of existing shares to be sold by the majority shareholder, KKR Evergreen Aggregator and other manager shareholders.

The company said it expects to be eligible for the FTSE 250 index on admission.

Former Eircom chief executive Phil Nolan is joining the firm as chairman.

“We expect new shareholders in the company to benefit from Calisen’s strong position in Britain’s smart metering segment and compelling financial track record with dynamic growth, and the skill and deep sector expertise of an experienced management team,” Nolan said.

Tara Davies, head of European infrastructure at KKR, said: “We have been impressed by the progress the group has achieved in the past few years and we look forward to sharing in the company’s continued success as its largest shareholder following the listing.”

Credit Suisse International is acting as sponsor, with other banks involved including Citigroup Global Markets, HSBC, Barclays and Goldman Sachs.

Last year London’s initial public offering (IPO) market suffered its quietest year for a decade.

Just 35 companies floated raising £5.9bn, down from 79 listings raising £9.5bn in 2018.