Flotation to value Jupiter at up to £748m as IPO prices at lower end of range
Wednesday 16 June 2010
The fund manager Jupiter is set to sell shares in its initial public offering (IPO) towards the bottom of its guidance, showing that investors are still cautious amid weak markets, a source close to the deal said.
Jupiter's offer to sell 122 million new shares and the sale of up to 59 million sold by the current owners was covered at 160p to 170p per share. The new guidance values the company at up to £748m. The offer began on 2 June with an original price range set at 150p to 210p.
The sale of shares is likely to be less than £300m. A final sale price is scheduled to be announced early today and the shares will start trading in London on Monday.
Long-term institutional investors in the UK are likely to make up more than three-quarters of the order book. An IPO order book where long-term investors outnumber hedge funds is usually regarded as positive because it minimises volatility when the shares start trading.
The listing will mark Jupiter's second outing on the London Stock Exchange. It first listed in 1991 before being taken private in 1995 when it was bought by Commerzbank. The ownership passed to staff in a management buyout backed by the private equity firm TA Associates in 2007. A motive behind the current IPO is to refinance the debt issued as part of that transaction.
TA Associates, which now has a 25 per cent stake, will hold about 17 per cent of the company following the sale. Other large shareholders include the highly-regarded fund manager Tony Nutt, who runs the Jupiter Income Trust, with 9 per cent of the company that will reduce to 4.9 per cent after the IPO.
Mr Nutt's stake after the deal would be worth about £36.6m if the deal priced at 170p. His colleague Philip Gibbs, who manages Jupiter's flagship Financial Opportunities fund, will hold 3.43 per cent of the company worth up to £25.6m.
The chief executive Edward Bonham Carter, brother of the actress Helena Bonham Carter, will be left with a 3.34 per cent stake in the company, worth about £25m.
- 1 Moscow voted the world's unfriendliest city
- 2 The excuses your boss is most likely to believe when you call in sick
- 3 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 4 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
- 5 If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Senior British politicians tell David Cameron: When dead children are being washed up on beaches, it's time to act
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...