Wellstream Announces Price Range for IPO
Wellstream Holdings PLC on Thursday announced the Offer price range for its proposed initial public offering of its Ordinary Shares, which are intended to be admitted to the Official List of the UK Listing Authority and to trading on the London Stock Exchange. The Offer price range has been set at 280 to 350 pence per Ordinary Share implying an expected total Offer size of approximately £214 million (before any exercise of the over-allotment option) and a market capitalization of approximately £315 million, at the midpoint of the Offer price range. Book-building commenced Thursday.
Before any exercise of the over-allotment option, the Offer comprises approximately 44.1 million existing Ordinary Shares of which funds affiliated with Candover Partners Limited (together "Candover") are offering approximately 38.0 million Ordinary Shares representing 65% of their shareholding, Uberior Trading Limited (a wholly owned subsidiary of HBOS plc) is offering 1.5 million Ordinary Shares representing all of its shareholding, and management are offering approximately 4.6 million Ordinary Shares. Further, the Company is seeking to raise gross proceeds of approximately £75 million through the sale of new Ordinary Shares primarily to reduce its level of indebtedness, pay IPO fees and expenses and together with a concurrent debt refinancing package, enable the Company to pursue its future growth plans.
In connection with the Offer, Candover has granted to Credit Suisse Securities (Europe) Limited ("Credit Suisse") an over-allotment option in respect of additional existing Ordinary Shares representing approximately 10% of the Offer.
Following the Offer, any shares held by Candover and the Company will be subject to a 180 day lock-up agreement with Credit Suisse. Shares held by management will be subject to a 360 day lock-up agreement with Credit Suisse.
Under the Offer, the Ordinary Shares will be sold at the Offer price that will be determined by the Company and the selling shareholders in consultation with Credit Suisse. The Offer price, which is expected to be within the Offer price range, is anticipated to be announced and dealings in the Ordinary Shares are expected to commence on a conditional basis on or around 26 April 2007. Admission to the Official List of the UK Listing Authority is expected to occur and unconditional dealings in the Ordinary Shares are expected to commence on or around 1 May 2007. The Offer is being made to institutional investors in the UK and certain other markets.
Credit Suisse is acting as Sponsor and Sole Bookrunner in the IPO; Citigroup is acting as Co-lead Manager. Lexicon Partners is acting as financial adviser to the Company.
Wellstream Chief Executive Gordon Chapman said:
"This price range announcement marks the beginning of the book-building period and is an important step in our IPO process. We look forward to commencing our roadshow today."
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