Exco's 175p flotation price values company at pounds 215.5m: Profits forecast increased because of present volatility in money markets
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE international moneybroker Exco, based in London, will float next month at a price of 175p per share, valuing the business at pounds 215.5m, writes John Willcock.
The offer price has been pitched at about eight times prospective earnings to yield 6 per cent growth, a level encouraging analysts to suggest that the shares will go to a premium.
Increased volatility in the money markets due to interest rate uncertainty prompted Exco to increase its profits forecast for the half-year to 30 June yesterday by pounds 500,000 to at least pounds 27.5m.
If it had already been listed, Exco said that it would have recommended a dividend for 1993 of 8.4p net per ordinary share. Dealings start on 19 July.
The float will enable the administrators of British & Commonwealth, Exco's ill-fated former parent, to sell their remaining 40 per cent holding in the broker. The administrators, Ernst & Young, sold 60 per cent of Exco in 1992, valuing the company at pounds 75m.
Another 3 per cent is being sold by Flemings and Gartmore while Exco's remaining institutional shareholders and 150 employees are keeping their stakes.
Exco's chief executive, Ron Sandler, brushed aside worries that choppy stock market conditions might have derailed the float or forced a cheap price.
'There has been a lot of talk about new issue fatigue, but the institutions have been eager to hear our story,' he said. 'Trading conditions are very good. Volatility in global fianncial markets is very beneficial to our business.'
(Photograph omitted)
Bottom Line, page 38
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments