Servelec Group announces intention to float
YORKSHIRE-based Servelec Group has announced its intention to float on the main market of the London Stock Exchange.
Servelec operates from offices around the UK and internationally, with the largest number of its employees being based at the company’s headquarters and purpose-built engineering site in Sheffield.
Since July 2000, the company has been wholly owned by CSE Global, a company whose shares are traded on the Singapore Stock Exchange.
Servelec has grown both organically and through acquisition and now operates two divisions:
– Servelec Healthcare: specialises in the design, development and implementation of Electronic Patient Record software within secondary care settings and is a market leader in the Mental Health and Community Health sectors in England; and
– Servelec Automation: provides complex, mission-critical control systems to large blue-chip companies mainly in the UK, focusing on the oil & gas, nuclear, power, utilities and broadcast industries.
The IPO will involve CSE Global selling its entire holding to certain institutional and other investors in the UK and elsewhere alongside the issue of new shares to eligible employees under a separate employee offer.
Alan Stubbs, chief executive of Servelec Group, said: “We are very pleased to announce our intention to join the main market of the London Stock Exchange. Servelec has a proven track record of delivery over many years, establishing a market-leading position in each of its business divisions. This is built upon the strong intellectual property and engineering heritage prevalent throughout our business, and the excellent long-term relationships we have with our blue chip customers.
“The markets in which we operate have structural and regulatory growth drivers and we have identified numerous commercial opportunities to pursue additional growth for our business. The present ownership structure, as part of a larger group, places a constraint on the ability of the management team to capitalise on these exciting opportunities. An IPO is the natural next stage of development for Servelec, providing the appropriate platform to drive growth both organically and through acquisition.”
Lawyers from Walker Morris are advising on the proposed IPO, led by corporate partners Paul Emmett and Richard Naish.
Mr Emmett said: “Walker Morris is delighted to be advising Servelec on its Main Market IPO. We have advised the business for many years, including on the 3i backed MBO in 1995, its sale to CSE Global in 2000 and various strategic acquisitions since then. Building long lasting, trusted relationships are central to the Walker Morris ethos.”
Mr Naish commented: “As the London IPO market really begins to open up, we are very pleased to be advising on this Main Market flotation. We have a strong equity capital markets heritage at Walker Morris and advising Yorkshire based Servelec further demonstrates our capabilities in this area of work. We look forward with confidence to playing our part in helping other clients with IPOs and secondary offerings to grow and expand their businesses.”
Paul Emmett and Richard Naish are being supported by a team drawn from across the firm including Joy Irving, Dina Saleh, Edward Ainscoe, Tony Dosanjh and Sarah Sharkey (corporate), Simon Concannon and David Blummental (tax), Hugo Wharton and Lee Crook (commercial), Shakeel Dad and Stephen De’Giovanni (employment), Scott Flint (real estate), Jo Ratcliffe (pensions), David Tinkler (finance), Rif Kapadi (regulatory), Josh Kitson (environment and planning), Helen Thomas-Peter (intellectual property) and Jeremy Scholes (competition).
Investec Bank is acting as sponsor, financial adviser, bookrunner and broker to the company. Ernst & Young is acting as reporting accountants. Bird & Bird is advising Investec.
