US group joins rising trend to list in London
Isabelle Fraser CONTOURGLOBAL, a US energy group, plans to raise $400m (£304m) with a listing on the main market of the London Stock Exchange.
The company, which operates renewable and thermal energy generators, expects to have a free float of at least 25pc of its issued shares, and is likely to list in early November. It would value the company at an estimated $2.5bn.
After a slump in the number of initial public offerings (IPOs) in London, which reached their lowest level since 2012 in March, ContourGlobal is the fourth company to announce it will float this week.
Bakkavor, a supplier to Tesco and M&S, TI Fluid Systems, which makes car parts, and Glenveagh Properties, an Irish housebuilder, all announced their intentions to IPO on London’s stock exchange in the last week.
ContourGlobal, which is 12 years old and has 69 renewable and thermal energy generators in 19 markets across Europe, Latin America and Africa, said it planned to double its core EBITDA, excluding items such as tax and depreciation, to more than $1bn in the next five years. Last year, its ebitda was $440.4m, on revenues of $905.2m.
Joseph C Brandt, the chief executive, said: “The capital raised at IPO will enable us to strengthen our balance sheet while providing further flexibility to fund already identified growth opportunities.”