Detica listing signals Candover part exit

Adding to signs that IPOs are coming back to the UK, IT consultancy Detica has confirmed that it plans to float at the end of April.

Detica, the UK IT consultancy firm based in Guildford, is to list on the main market of the London Stock Exchange at the end of April, making it the first IT-related stock to complete an IPO since 2000.

The company is expected to float at around 475p per share, giving the firm a market capitalisation of just over £100m. Candover, which invested in the management buyout of Detica in 1997, stands to achieve an £11m profit on selling half of its current 40 per cent holding in the company. Candover is understood to have paid around £6.5m for its original 50 per cent stake in 1997.

£8m of the £13.1m proceeds from the float is meant to be used to redeem preference shares and pay off debt. The remaining £5.1m will be earmarked for acquisitions.

Detica will shortly announce its results for the year to 31 March 2002 which are expected to show a 23 per cent increase in turnover to £32.8m. Pre-tax profits for the year ended 31 March 2002 are estimated at £5.9m up 26 per cent on 2001.

UBS Warburg is acting as sponsor, global co-ordinator, financial adviser and bookrunner.