LONDON (Reuters) - British tool and equipment-hire company HSS Hire Group plans to list on the London stock market next month, raising a little more than 100 million pounds ($151 million) from new shares while allowing existing investors to cut their stakes.
The company is expected to be valued at up to 600 million pounds. Its revenue in the year to Sept. 27 was 271.6 million pounds, against 177 million pounds in 2011.
HSS, which said it is the second-biggest provider of tool and equipment hire in Britain, operates from 265 locations and has about 2,900 staff.
It said it intends to use the 103 million pounds of primary proceeds to reduce its current borrowing and to fund future growth.
Funds managed by Exponent Private Equity, insurer Standard Life (L:SL) and some directors, senior management and other individuals will also sell shares. The company declined to say how much existing shareholders will sell but said that the company's free float will be at least 25 percent after the offer.
The offer is to institutional investors and there is an intermediate facility to allow participation by retail investors. The shares will be listed on the London Stock Exchange's (L:LSE) main market.
The offer is being handled by JP Morgan (N:JPM), with Numis Securities as joint bookrunner.