US group joins ris­ing trend to list in Lon­don

The Daily Telegraph - Business - - Business - By

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.”

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