New issues in demand as flops are forgotten

Flotation boom: Three companies come to the market and find surprising strength

Further evidence that the new issues market is back to rude health came yesterday when three companies revealed strong interest in their flotation plans.

"We were a little surprised," admitted Ron Zeghibe, chief executive of the outdoor advertising group Maiden, which is joining the main stock market next week. "Demand for our shares has been pretty exceptional."

The new issues market has been in the doldrums in recent years after a number of spectacular stock market flops, most notably the computer service group McDonnell Information Systems (MDIS) and the aircraft components manufacturer Aerostructures Hamble.

But, encouraged by a buoyant stock market, investors have returned to the sector with interest in recent months.

Maiden, which owns 25,000 poster sites around the country, was expected to be worth at least pounds 65m but a placing price of 220p announced yesterday will value the company at pounds 86.5m when dealings in the shares start next Tuesday.

The placing will raise pounds 17.9m to repay debts of pounds 37m incurred when Mr Zeghibe bought out venture capital partners Morgan Grenfell Development Capital last year.

The biopharmaceutical group Vanguard Medica, the largest of the companies to reveal flotation details yesterday, also got a friendly reception in the City. Vanguard said its placing of 11 million shares at 450p was several times oversubscribed.

Estimated net cash proceeds from the placing were around pounds 46.5m - some pounds 10m higher than originally expected.

The new capital from the placing, which values Vanguard at pounds 111.5m, will be used to fund research of existing compounds and the acquisition of new compounds.

Vanguard is building a portfolio of new drug candidates through licensing and collaborative agreements. The company has an existing product line of five compounds, including treatments for migraines and inflammatory conditions. Trading in the shares is also due to begin on Tuesday.

Undoubtedly the highest-profile share launch came in the shape of the lingerie and nightwear specialist La Senza.

It is joining the junior Alternative Investment Market via a placing of 13.3 million shares at 150p each, valuing the company at over pounds 50m and raising pounds 19.4m. That compares with the pounds 15m La Senza originally hoped to raise to fund expansion to more than 152 outlets over the next five years, compared with the 22 it has now. La Senza plans to roll out its premium brand, which is pitched above Marks & Spencer, the dominant player in a British lingerie market worth almost pounds 1.5bn.

La Senza occupies a similar niche to Knickerbox, but the latter is a kiosk operation with smaller stores concentrating on bras and knickers whereas La Senza offers a wider range of fashion items.

Competition in the sector is expected to hot up. Last year, Sheffield entrepreneur Stephen Hinchliffe's Facia group bought the Contessa chain of women's lingerie shops and promised to redesign the range and broaden its appeal beyond women over 35.

The La Senza concept was developed by Suzy Shier, a quoted Canadian company which launched shops in the UK at the end of 1994.

News
Tommy Ramone performing at The Old Waldorf Nightclub in 1978 in San Francisco, California.
peopleDrummer was final surviving member of seminal punk band
Life and Style
Swimsuit, £245, by Agent Provocateur
fashion

Diving in at the deep end is no excuse for shirking the style stakes

Sport
The Mexico chief finally lets rip as his emotions get the better of him
world cup 2014
Sport
German supporters (left) and Argentina fans
Final gives England fans a choice between to old enemies
PROMOTED VIDEO
Voices
Spectators photograph the Tour de France riders as they make their way through the Yorkshire countryside
voicesHoward Jacobson: Line the streets for a cycling race? You might just as well watch a swarm of wasps
Life and Style
lifeHere's one answer to an inquisitive Reddit user's question
News
peopleDave Legeno, the actor who played werewolf Fenrir Greyback in the Harry Potter films, has died
Sport
Mario Balotelli, Divock Origi, Loic Remy, Wilfried Bony and Karim Benzema
transfersBony, Benzema and the other transfer targets
Sport
Yaya Touré has defended his posturing over his future at Manchester City
News
Detail of the dress made entirely of loom bands
news
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Life and Style
beauty
Sport
There were mass celebrations across Argentina as the country's national team reached their first World Cup final for 24 years
transfersOne of the men to suffer cardiac arrest was 16 years old
Arts and Entertainment
Armando Iannucci, the creator of 'The Thick of It' says he has
tvArmando Iannucci to concentrate on US show Veep
News
A mugshot of Ian Watkins released by South Wales Police following his guilty pleas
peopleBandmates open up about abuse
Sport
Basketball superstar LeBron James gets into his stride for the Cleveland Cavaliers
sportNBA superstar announces decision to return to Cleveland Cavaliers
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Biztalk - outstanding opportunity

£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...

Trade Desk Specialist (FIX, Linux, Windows, Network Security)

£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...

Service Desk Analyst (Windows, Active Directory, ITIL, Reuter)

£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...

Network Engineer (CCNA, CCNP, Linux, OSPF, BGP, Multicast, WAN)

£40000 per annum: Harrington Starr: Network Engineer (CCNA, CCNP, Linux, OSPF,...

Day In a Page

A History of the First World War in 100 Moments: Peace without magnanimity - the summit in a railway siding that ended the fighting

A History of the First World War in 100 Moments

Peace without magnanimity - the summit in a railway siding that ended the fighting
Scottish independence: How the Commonwealth Games could swing the vote

Scottish independence: How the Commonwealth Games could swing the vote

In the final part of our series, Chris Green arrives in Glasgow - a host city struggling to keep the politics out of its celebration of sport
Out in the cold: A writer spends a night on the streets and hears the stories of the homeless

A writer spends a night on the streets

Rough sleepers - the homeless, the destitute and the drunk - exist in every city. Will Nicoll meets those whose luck has run out
Striking new stations, high-speed links and (whisper it) better services - the UK's railways are entering a new golden age

UK's railways are entering a new golden age

New stations are opening across the country and our railways appear to be entering an era not seen in Britain since the early 1950s
Conchita Wurst becomes a 'bride' on the Paris catwalk - and proves there is life after Eurovision

Conchita becomes a 'bride' on Paris catwalk

Alexander Fury salutes the Eurovision Song Contest winner's latest triumph
Pétanque World Championship in Marseilles hit by

Pétanque 'world cup' hit by death threats

This year's most acrimonious sporting event took place in France, not Brazil. How did pétanque get so passionate?
Whelks are healthy, versatile and sustainable - so why did we stop eating them in the UK?

Why did we stop eating whelks?

Whelks were the Victorian equivalent of the donor kebab and our stocks are abundant. So why do we now export them all to the Far East?
10 best women's sunglasses

In the shade: 10 best women's sunglasses

From luxury bespoke eyewear to fun festival sunnies, we round up the shades to be seen in this summer
Germany vs Argentina World Cup 2014: Lionel Messi? Javier Mascherano is key for Argentina...

World Cup final: Messi? Mascherano is key for Argentina...

No 10 is always centre of attention but Barça team-mate is just as crucial to finalists’ hopes
Siobhan-Marie O’Connor: Swimmer knows she needs Glasgow joy on road to Rio

Siobhan-Marie O’Connor: Swimmer needs Glasgow joy on road to Rio

18-year-old says this month’s Commonwealth Games are a key staging post in her career before time slips away
The true Gaza back-story that the Israelis aren’t telling this week

The true Gaza back-story that the Israelis aren’t telling this week

A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
A History of the First World War in 100 Moments: The German people demand an end to the fighting

A History of the First World War in 100 Moments

The German people demand an end to the fighting
New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

New play reveals what Oscar Wilde said at trials

For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
Can scientists save the world's sea life from

Can scientists save our sea life?

By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

Richard III review

Martin Freeman’s psychotic monarch is big on mockery but wanting in malice