Good omens for Graham Group debut
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.GRAHAM Group, Britain's fourth- largest builders' merchant, is well- placed for a strong market debut next week after the offer-for-sale element of its flotation was over-subscribed, writes Tom Stevenson.
By yesterday's close, applications had been received for 58.8 million shares, 1.5 times the 40 million on offer. Anyone applying for more than 2,000 will have their allocation scaled back.
The remaining 75 million shares were placed with institutional investors at 183p, valuing the group, which has been a part of BTR since 1983, at pounds 210m. Dealings will start next Tuesday.
Analysts expect the shares to move to a small premium thanks to the decision to float the company at a discount to peers such as Wolseley and Travis Perkins.
Expectations of pre-tax profits of pounds 17m, up from pounds 13.5m last year, put the shares on a prospective price/earnings ratio of 18.5. Last week, the group said it would have paid a dividend of 4.6p, implying a yield of 3.1 per cent, had its shares been quoted for the whole of 1993.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments