Tuesday 5th February 2008
Engineering business raises £67 million on AIM
Kentz, an engineering and construction group, has raised £66.7 million through an initial public offering (IPO) on AIM. This is the largest AIM IPO for several weeks following what has so far been a quiet start to 2008.
Less than a third of the proceeds of the placing will be available to the Jersey-incorporated company, with the remainder going to selling shareholders. Kentz’s market capitalisation at the placing price of 115p per share is £133.8 million.
Hugh O’Donnell, CEO of Kentz, said that the IPO was an important milestone in the history of the company, which goes back to 1919 when it was established in Ireland as M F Kent.
He adds: ‘We believe that Kentz’s proven track record with blue-chip clients and potential growth opportunities, particularly in the oil, gas and mining sectors, has generated strong support from a broad range of investors.’
Following the IPO, just under half of the company’s shares (49.9 per cent) are in public hands, while roughly a quarter (25.8 per cent) are owned by an investment vehicle called Kerbet, which is ultimately owned by two of Kentz’s directors. Kerbet acquired a majority stake in Kentz in the mid-1990s when the group underwent a restructuring due to financial difficulties.
Employing 7,000 full-time staff, Kentz has operations in countries throughout the Middle East, Africa, Southeast Asia, the Americas and Northern Europe. In the year to December 2006 it generated revenues of US$370 million (£188 million) and pre-tax profits of $25 million (£13 million).
Nick Britton
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