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LONDON (Alliance News) - Testing company Exova Group Ltd Thursday said it intends to proceed with an initial public offering on the London Stock Exchange main market in April, adding to a growing pipeline of upcoming new issues as the London IPO market continues to recover after several years of weak activity.
Exova has 117 labs in 22 countries which provide safety, performance and quality testing for a range of materials, components and systems. It made revenues of GBP279.0 million in 2013, up 10% on the year, and earnings before interest, tax, depreciation and amortisation of GBP48.1 million, up 15.1% on the year, excluding items including restructuring costs and merger and acquisition costs.
The company said new and existing shares will be offered in the IPO, with the new shares set to raise gross proceeds of about GBP110 million for the company. That will be used to repay some outstanding borrowings it has under existing financing arrangements, including redeeming its publicly traded bonds.
Exova's announcement came as New Zealand and Australia-focused oil explorer Mosman Oil and Gas Ltd started trading on AIM having priced its IPO at 8 pence a share, raising GBP1.5 million. That gave it an initial market capitalisation of GBP4.9 million.
Its shares were trading at 8.19 pence Thursday morning. It will use the money raised in the IPO for a drilling programme at its Petroleum Creek project in New Zealand and to advance native title negotiations at its Officer Basin project in Australia.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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