Bridgepoint's shares rise sharply as it starts trading on the LSE
Bridgepoint has seen its share price rise to 440 pence on the London Stock Exchange today (21 July), a 26 per cent increase on the 350 pence per share set for its IPO, during Wednesday morning trading.
Based on the offer price, Bridgepoint’s total market capitalisation at the start of dealings on the main market of the London Stock Exchange was close to GBP2,881 million.
The private equity firm’s shares – whose investments include UK restaurant chain Itsu, Burger King's France and UK branches and Wiggle – quickly rose 21 per cent during early trading hours and have continued rising.
The private equity group's IPO is the first major listing by a UK private equity firm in almost thirty years, as British buyout groups tend to be run as private partnerships.
The offer consists of 85.7 million new shares, raising nearly GBP300 million to fund the company’s investment in the next generation of Bridgepoint funds, launch and seed potential new organic strategies, assess acquisition opportunities, as well as reducing the group’s debts, the buyout group said in a statement.
The initial public offering also included 139.7 million existing ordinary shares to be sold by Bridgepoint’s shareholders.
Admission of Bridgepoint’s entire issued ordinary share capital to the premium listing segment of the official list of the FCA and to trading on the main market for listed securities of the London Stock Exchange, and the commencement of unconditional dealings, is expected to take place on 26th July.
JPMorgan and Morgan Stanley acted as joint global co-ordinators, with JPMorgan acting as sole sponsor in relation to the transaction, and BNP Paribas, Citigroup and Merrill Lynch as joint bookrunners. Moelis & Company is acting as financial adviser.
Bridgepoint, which was formed in 2000 after a management buyout of NatWest’s PE division, has close to EUR27.4 billion of assets under management.