The price values Finelist at 16.9 times its forecast earnings of 7.7p a share for the year to the end of June. The placing will raise pounds 4.9m worth of new money for the company, pounds 2.9m of which will be used to redeem preference shares and repay debt, with the remainder earmarked for expansion.
The directors will retain 21.1 per cent of the company after the flotation, with Chris Swan, the chairman, holding about 15 per cent. Mr Swan led a management buyout in 1991, having already been involved in a previous buyout two years before that.
Finelist distributes motor components through 73 depots, 25 of which are franchise operations. Its customers range from small independent garages to national retailers such as Halfords.
Meanwhile, Partco, another parts distributor that is also floating next month, reported that its pre-tax profits had more than doubled to pounds 4.3m in 1993. Turnover was pounds 6m higher at pounds 124m. Partco is much bigger than Finelist, with more than 200 branches. It is expected to be valued at about pounds 50m by its flotation, which is by way of a placing and intermediaries offer.Reuse content