Shares digital

SHARES RATING

Mortice 1 (low)-5 (high)

Management: 4

Market: 3

Product: 2

Financial strength: 3

TOTAL SCORE: 12/20

A security services group is seeking to raise $25 million through an Aim listing to fund its transformation into a pan-Indian facilities management firm. Peregrine Group will change its name to Mortice upon flotation, scheduled for 27 February. It currently provides manned guard and cash transportation services to clients, including HSBC (HSBA), internet service provider AOL, and PC maker Dell.

It will use the IPO proceeds to make two acquisitions, potentially a cleaning company that shares a similar customer base to its security business. An interior services group is also under evaluation.

Andrew Barker, a proposed executive director, argues that most facilities work in India is handled by real estate managers who don’t have national coverage and aren’t interested in offering a full range of services.

‘These management companies subcontract all the facilities work. The client ends up with multiple relationships because the manager is only an agent and not a single point of contact for the facilities work,’ says Barker. ‘It is a complicated structure and not beneficial to the client. We want to come in and be the sole service provider.’

Mortice plans to target both commercial and industrial property owners. Over time, it plans to buy companies specialising in property management, engineering and maintenance.

Should it succeed in raising the full amount at IPO, Mortice will be valued at around $100 million. It plans to expand across Asia and the Middle East.

Institutional marketing began this week, with a roadshow targeting investors in Europe, Singapore and Hong Kong. Up to 30% of the company’s shares will be free float.