Partco offer wins strong demand from investors

PARTCO, the motor parts and accessories supplier, is headed for a successful stock market debut after its intermediaries offer was well oversubscribed, writes John Murray.

The flotation, at 200p a share, values the group at pounds 59.2m. Of the 14.6 million shares on offer, 11 million were placed with institutions.

The intermediaries offer, more than nine times subscribed, was for 3.6 million shares. About half the company's enlarged share capital is being sold in the flotation.

Most of the money raised will be used to pay off preference shares and other debts, although there is also about pounds 2m- pounds 3m of new money to develop the business.

The group, bought out from Quinton Hazell by management in 1986, has more than 200 branches supplying small independent operators and large chains such as Halfords.

The company made pounds 4.3m last year on turnover of pounds 124m. The management will hold about 2.5 per cent after the float.