Popular Albright rations investors
Tuesday 28 February 1995
When the offer closed on Friday the company had received applications for 216 million shares, worth £324m at the offer price. However, only 47 million shares were available to the public. The other 266 million shares were placed with City institutions.
Smaller investors applying for fewer than 400 shares were given their full allocation while those applying for more than 9,000 shares were restricted to a maximum of 3,500 each.
The company was being sold by its former US parent, Teneco, the Houston- based manufacturing conglomerate, as a part of a strategy to concentrate on core manufacturing businesses - making parts for cars, pipelines and packaging.
Albright was the company's only chemical manufacturer. It makes chemicals for a range of products from Coca-Cola to washing powder. The company employs 4,000 in Britain and overseas.
With the shares valued at 150p each the sale raised £460m for the US company. However, the price was well below initial City forecasts of 190p. The difference cost Teneco £125m.
The historic price earnings ratio is 11.7, somewhat below the sector average of 15.
The company justified the low price, saying poor underlying market conditions had been a factor in the decision to reduce the asking price.
Robin Paul, Albright's chief executive, said: "We never put out a forecast. It was analysts that valued us at nearly £600m. The right price is the price the market will pay. If people feel it's a bargain then you get lots coming in. If they don't then they stay away. There is a fine margin between an offer being a bargain or not."
In its prospectus the company said it made £57.5m pro forma profit before tax in 1994 - the fourth-quarter figures being an estimate. Turnover had been estimated at £640m.
A total of 1.5 million shares have been allocated on a priority basis to qualifying employees and to the trustees of the Albright & Wilson profit- sharing scheme and employees' benefit trust, whose applications have been met in full.
Albright & Wilson said it expected that definitive share certificates would be posted to successful applicants on 7 March and that dealings would start the next day.
Refunds for applications not satisfied in full are expected to be posted on 7 March.
Jeremy Chantry, a chemicals sector analyst with Kleinwort Benson, said: "It will prove a rewarding investment for the longer-term investors."
New essay by JK Rowling went live on Pottermore site this morning
Top Gear presenter is no stranger to foot-in-mouth controversy
New UK station Russia Today gives a very bizarre view of Britain
- 1 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 2 Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
- 3 Top Gear presenter Jeremy Clarkson criticised for beer tweet
- 4 Woman blinded as a child can see again after hitting her head on a coffee table
- 5 The bubble bursts for Sodastream
'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
Woman blinded as a child can see again after hitting her head on a coffee table
Top Gear presenter Jeremy Clarkson criticised for beer tweet
The bubble bursts for Sodastream
Russian politician says Apple CEO Tim Cook should be 'banned' from country after coming out as gay
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
Muslims, immigration and teenage pregnancy: British people are ignorant about almost everything
iJobs Money & Business
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...
£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...