Intermediary offer brings Wetherspoon to market
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 USE of intermediary share offerings in flotations appears to be gathering pace. JD Wetherspoon, the pub operator, yesterday confirmed it was coming to the market via the device, which enables brokers' private clients to buy some shares, writes John Shepherd.
Intermediary offers are designed to improve the post-flotation trading of shares. They ensure that a large part of the equity is broken up into small parcels.
Today's is the second such offer this week. On Tuesday Trinity Holdings, maker of Dennis vehicles, announced similar plans.
A pathfinder prospectus for Wetherspoon's flotation has been issued by Kleinwort Benson, the merchant bank.
Most of the key financial details are being kept secret for another fortnight, but the offer will raise about pounds 24m and will value Wetherspoon at more than pounds 40m.
The company has 44 pubs, mainly in London, but needs cash to develop another 18 sites. Most of its pubs are converted shops or car showrooms and cost, on average, pounds 500,000 to alter.
Tim Martin, Wetherspoon's founder, will own about 25 per cent of the company after flotation. However, it will lose Scottish & Newcastle as a shareholder. The brewer is selling its 17 per cent stake, bought at pounds 12 a share.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments