Regus valued at up to £1.6bn in second attempt at flotation

Saeed Shah
Wednesday 27 September 2000 00:00
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Regus, the provider of serviced office space that was forced to pull its flotation a year ago, yesterday revived its stock market plans, announcing a listing that will value the company at up to £1.6bn. Mark Dixon, the founder and chief executive, will own 60 per cent of the company after the float, making him one of Britain's richest men.

Regus, the provider of serviced office space that was forced to pull its flotation a year ago, yesterday revived its stock market plans, announcing a listing that will value the company at up to £1.6bn. Mark Dixon, the founder and chief executive, will own 60 per cent of the company after the float, making him one of Britain's richest men.

Regus, a fast-expanding group that made an operating loss of £48m last year, expects to raise about £250m in the IPO. It operates a network of 302 business centres in 47 countries, focused on the UK, the United States and Western Europe.

Details of the float, published yesterday, gave a price range of 200p to 270p a share, valuing the company at £1.2bn to £1.6bn. Regus will also list on Nasdaq.

Last September, in an embarrassing climbdown, Regus called a halt to its listing at the pre-marketing stage. It is thought Regus had then valued itself at £1bn, though it never formally gave a price. Fund managers were sceptical about predicted growth, particularly forecasts for US expansion.

Yesterday, Regus said it expected sales of £385m to £415m for the year ended 30 June 2001. It said earnings will break even before interest, tax, depreciation and exceptional items, but failed to state when it would be profitable at the pre-tax level.

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