Tinned tuna giant Princes confirms intention to float
Tinned tuna heavyweight, Princes, has confirmed its intention to proceed with its IPO to list on London’s main index.
The decision comes just one week after the Italian-owned business announced it was considering a listing.
The offer will be comprised of new ordinary shares to be listed by the company, in order to raise net proceeds for further growth and potential acquisitions. Princes will qualify for inclusion in the FTSE 100 based on its fundraising target.
The final offer price is to be determined following a bookbuilding process, where potential investors submit their willingness to buy shares at certain prices.
Princes, which was bought by Italian food company Newlat last year, is known for owning a host of familiar brands, including margarine brand Flora and Branston pickle, as well as its notorious tinned tuna, expects that trading will commence by the end of October.
Princes offer to investors
The offer will be available to institutional investors in the United Kingdom and elsewhere, including the US.
However, directors and existing shareholders are expected to agree to customary ‘lock-up arrangements’ restricting the disposal of shares for a period of time following the group’s admission to the stock exchange..
The Italian-owned business generated £2.1bn in revenue last year through its five business units, exporting its products to over 60 countries.
It generated an adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of £122.3m.
Headquartered in Liverpool, the group operates 23 facilities across the UK and Europe and plans to use its London listing to continue its M&A ambitions.
London’s listing market wakes up
The Prince’s IPO is the latest in a series of listing announcements that have emerged in recent weeks following a decline in listing activity on the London market.
The Beauty Tech Group had a strong trading debut last week and digital lender Shawbrook has also announced its intentions to go public in what could be London’s biggest IPO this year.
Meanwhile, rumours continue to grow about potential floats from high street staple Boots and online travel agency Loveholidays.
Industry figures are also hoping that speculation that the Treasury will cut stamp duty to 0.5 per cent will help entice investors to London.