On Friday Clipper Logistics Group began offering shares on the London Stock Exchange, a fair few years after the idea was first floated.
Early indications are that IPO was a wise choice for the firm. At the end of the first day of conditional trading, its share price jumped to 112.5p from 100p at admission. And that is before it begins trading fully on the main market on Wednesday.
The company’s admission prospectus shows that its finances are also in good shape. Clipper estimates that its adjusted earnings before interest and tax (EBIT) for the year ended 30 April 2014 will be £9.6m, compared to £8.7m the previous year.
However, it expects that pre-tax profit for the same year will drop to £4.2m (2013: £5.2m). It did not give much explanation for the drop but the costs associated with the flotation. These include pre-admission reorganisation and the cost of the placing itself, which are expected to be £2.2m. Some £1.7m of this was paid by the firm before the end of April.
The operator will start with a market cap of £100m when unconditional trading begins on Wednesday.