Marks Electrical announces successful AIM IPO
Marks Electrical is to raise £2.6 million as part of its initial public offering on London’s AIM.
In statement today, the online electricals retailer said it had placed around 27.3 million new and existing shares at a price of 110 pence per share to give the company a market capitalisation of £115 million on admission.
The company said the placing attracted strong support from high quality institutional investors and was over-subscribed. Trading in the shares is expected to begin on 5 November.
The net proceeds will provide Marks with sufficient cash reserves for potential future investments in capacity enhancement and costs associated with moving to larger premises.
On admission, the company will have 104,9 million shares in issue and a free float of approximately 25.9%.
Marks announced last month that it was planning to float on AIM to help it increase brand awareness and grow its market share.
Today, Mark Smithson, founder and chief executive of Marks Electrical, said: “We have been thrilled with the strong support we have received from institutional investors during the IPO and are delighted to welcome them as shareholders.
“Becoming a publicly listed company marks the start of an exciting new chapter for Marks Electrical as we push on with our growth plans and I look forward to growing the business alongside the rest of the team in the years to come.”
In the year to 31 March 2021, the company’s revenue rose by 78% to £56 million while EBITDA increased to £7.45 million, at a 13.3% EBITDA margin.
