Financial administrator Equiniti is lining up a £390 million retail initial public offering (IPO) as private equity firm Advent lnternational looks to sell down its stake in the business.
Proceeds will be used to pay down net debt, which is currently in the region of £700 million, according to our calculations.
Twelve month trailing adjusted earnings before interest, tax depreciation and amortisation (EBITDA) was £82 million.
More information will be available when a prospectus is published.
Equiniti has three key divisions: Investment Solutions, which represents 29% of revenue, Intelligent Solutions (28%) and Pension Solutions (41%).
Investment solutions provides registration, employee and investment services including administration of corporate share registers.
This activity is under threat from the campaign for ‘dematerialisation’, which would see share certificates transferred into electronic format and could lead to reduced demand for the service.
Intelligent Solutions is an administrator for finance businesses with complex regulatory requirements. Pension Services is a 179 year-old business which provides pension and payment administration services to organisations including the NHS.
Retail investors interested in finding out more about the IPO should check the websites of some of the stock brokers signed up for the offer.
They include Beaufort Securities, Interactive Investor, Saga, Shareview and Selftrade.
