HSS Hire IPO: Share price revealed
Tool and equipment hire company HSS Hire will list on the London Stock Exchange said today shares will be priced in the 210p-262p range when it IPOs later this month.
The company announced plans to list on the London Stock Exchange earlier this month, with analysts putting its value at £103m.
The money generated from the floatation will be used by the business to pay down debt and meet the costs of the IPO. It will also help to speed up its expansion plan in the UK and Ireland – the company hopes to set up 500 outlets.
The company, which operates from 265 branches and employs around 2,900 staff, is considered the second biggest tool hire provider in the UK. It has experienced a large increase in earnings over recent years, with revenue for the year to 27 September 2014 at £272m – up from £177m in 2011.
The sale is mainly to institutional investors, although there is some opportunity for retail investors through an intermediate facility. It is being handled by JP Morgan, with Numis Securities as joint book runner.
Chief executive Chris Davies said:
Our differentiated market position and focus on capital efficiency are enabling HSS to grow ahead of the overall tool and equipment hire market while generating industry-leading returns on assets.The proceeds from the IPO will enable us to accelerate our growth plans and expand from 265 to over 500 locations in the UK and Ireland over the next few years as we roll-out our new Local Format Branches nationwide.