Pensions consultant Xafinity announced that it will float on the London Stock Exchange on Thursday (16 February) this week in an effort to position the group for its next stage of development.
The company has conditionally raised £179.6m with an offer price set at 139 pence per ordinary share, equating to a market capitalisation of £190.3m.
The initial public offering (IPO) is expected to raise £46m net proceeds, which the company stated will be used, along with funds available under new debt facilities, to repay the group’s existing debt. This move is expected to slash Xafinity’s debt from £86m to £33m.
The directors stated that the IPO will position the group for “the next stage of development and will provide it with an appropriate capital structure for future growth” by enhancing the company’s public profile and provide access to the capital markets to aid in future growth.
It is also meant to help incentivise key management and employees to stay with the company.
Ben Bramhall, co-chief executive of Xafinity, said: "We have a very clear strategy to continue investing in our people and the services we provide to clients, including de-risking solutions.
“At the same time, we will continue to develop our highly accredited master trust, the National Pension Trust, as we believe this is a solution that employers need in the new world of flexible pensions.”
Paul Cuff, co-CEO of Xafinity, called the IPO the “logical next step” in the company’s strategy as it will help to enhance the profile of the company and provide access to markets to raise capital if needed in the future.
“We are very pleased with the response of investors to the Offer and thank them for the interest they have shown in Xafinity. We welcome our new shareholders and look forward to working with them to deliver value for all our stakeholders in the business.”
Zeus Capital and Deliotte assisted the deal as financial advisers.
