Zotefoams looks to earn £25m
Zotefoams, the Croydon based company, which makes foam used in neck braces and army helmets, is looking to raise £25m from the sale of half of its ordinary shares.
The pathfinder prospectus for the flotation, which is expected to value the company at £50m, was published yesterday.
The venture capitalists who invested in the 1992 management buy-out from BP will see their £600,000 investment in the ordinary shares of the company rise in value to £21m.
The venture backers are 3i, Prudential Venture Managers and Charterhouse, which will keep the majority of their ordinary shares.
The money raised will finance the repayment of £9.2m of preference shares, also owned by the venture capitalists, and net bank borrowings of £4m, giving the company an ungeared balance sheet.
The company has seen turnover grow by 30 percent since it was sold by BP to the managers for £20m.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies