Watkin Jones makes stock market debut

SHARES in construction firm Watkin Jones made their debut on AIM today after a successful placing.

The Bangor-headquartered developer, which also has an office in Runcorn and focuses on the student accommodation sector, has successfully raised £131.3m before expenses by placing 131.3 million shares with investors at a placing price of 100p a share.

Its market capitalisation at the placing price is £255m, making it the largest AIM initial public offering in the North West since  boohoo.com two years ago.

The proceeds will be used to fund the group’s growth plans, incentivise the management team and wider employee base and allow incumbent shareholders to realise a proportion of value held.

Mark Watkin Jones, chief executive of Watkin Jones plc, said: “The strong reception that the company has received from investors has been very encouraging and we are delighted with the success of our admission to AIM, which is a significant milestone in the evolution of our business.  The board joins me in welcoming all of our new shareholders.

“We now look forward to implementing our strategy and leveraging our position as a leader in the UK student accommodation development market as well as expanding our business further into the private rented sector.”

Turnover was £244.2m for the year to the end of September 2015 (2014: £227.3m) and operating profit from continuing operations stood at £32.5m (2014: £15m).

The company will announce a pre close trading statement for the six months to the end of March 2016 on April 7.

Zeus Capital acted as nominated adviser, joint bookrunner and joint broker to the company with Peel Hunt as joint bookrunner and joint broker.  

Both were advised by Addleshaw Goddard, including corporate partner Roger Hart, managing associate Jamie Partridge and associate Edward Hamilton.

The company’s ticker is WJG.

Tremayne Ducker, head of private equity and private company at Zeus Capital, said: “We are delighted to have advised Watkin Jones plc on its admission to AIM and £131m fundraising. The Watkin Jones business has been in existence since 1791 and the family have developed a very strong company with an innovative model and an extensive pipeline of new projects.

“I am confident that with the support of its new institutional investors, Watkin Jones will go from strength to strength as a public company.”