London-based pan-European private equity firm Doughty Hanson has completed the Initial Public Offering of Umbro, the UK sportswear maker, on the London Stock Exchange.
Shares in the company were priced at 100 pence each, significantly below the indicative range of 150 to 190 pence set two weeks ago.
50 million shares were sold to institutional investors, valuing the business at £145 million (€217 million; $267 million). The stock rose nearly ten percent in early London trading.
Following the flotation, Doughty’s shareholding in Umbro has been reduced from 83 percent to 57 percent. Doughty, which according to Bloomberg invested approximately £61 million in the company in 1999, will be paid about £42 million in dividends and from the redemption of preference shares.
Commenting on the transaction, Doughty's Bruce Roe said in a statement: “Following a significant turnaround at Umbro, we have now established a market for Umbro’s shares and we will continue to work closely with management to grow the value of the business.”
On Wednesday, Doughty postponed the Frankfurt IPO of Auto-Teile-Unger, the German operator of automotive parts stores and repair shops, citing adverse market conditions. A third portfolio company, aircraft parts manufacturer Dunlop Standard Aerospace, is being prepared for a trade sale.
The firm is currently in the process of raising a new €3 billion buyout fund, which held a first close on €700 million last year.