Housebuilder Crest Nicholson today said it would launch an initial public offering (IPO) in a bid to return to the stock market, more than five years after it was taken over during the housing crash.
The company said the IPO would comprise new and existing shares and the primary proceeds from the offer, around £50 million, would be used to pay outstanding debt.
It expects the offer to complete next month and become eligible for inclusion in the FTSE UK indices at the quarterly review at either March or June. Sources have suggested the firm will have a market capitalisation of at least £500m.
News of the planned flotation came as the builder reported a return to the black. It posted a pre-tax profit of £62.1m for the year to 31 October, compared with a loss of £89.1m a year earlier, on revenues 27.9 per cent higher at £408m.
Chief executive Stephen Stone said: “Crest Nicholson has a long and successful history as a public company and today we have announced our intention to return to the stock market.
“The housing market is entering a period of gradual recovery and with our emphasis on the south of England, including London, and the continued support for the new homes market from government, we are well positioned to generate value for shareholders.”
Crest was taken private by Scottish entrepreneur Sir Tom Hunter and HBOS in a £715m deal in 2007 and is now controlled by Deutsche Bank and US distressed investment fund Varde Partners.