Scottish housebuilder Miller Homes yesterday unveiled its long-anticipated move to join the London Stock Exchange a step which values the company at around £450 million.
Bosses said they would offer not less than 40% of the company for flotation, and expect to raise net proceeds of around £140m from the process.
The company said the fund would be used to pay down debts, giving greater flexibility and allowing it to take advantage of new opportunities.
Miller has long been touted for a listing, with speculation growing over the timing of the move following the sale of its loss-making sister construction business in a complex deal struck by parent Miller Group earlier this summer.
Results for the six months to the end of June, released a few weeks ago, showed a 40% hike in turnover to £206.9 million while pre-tax profits doubled to £8.3m.
The company completed a major refinancing in February 2012, bringing in £160m of new equity easing the debt burden and handing investors including Blackstone Group, RBS, Lloyds, Noble Grossart and senior management significant stakes.
Miller was established in Edinburgh in 1934. It focused on the Scottish capital before expanding into England in the late 1940s.
It is one of the UK’s top 10 housebuilders by volume of completions and selects regional markets, including central southern England, the Midlands, north of England and central Scotland, where it prioritises family homes in suburban locations.
Miller highlighted core completions of 845 homes during the first six months of the year, and stressed it expected to benefit from recovery in the UK regions over the coming years.
“Our distinctive focus and deep knowledge of the regions in which we operate, together with our large and well-located strategic land bank, position Miller Homes to drive strong and sustainable growth and to benefit from the continued recovery in these regional markets,” said chief executive Chris Endsor.
“It is an excellent time to be operating in the housebuilding sector, with demand for new housing continuing to grow, supported by improving macroeconomic conditions and mortgage market and a more favourable planning environment.
“We are proud of what we have achieved so far, and look forward to developing our business and creating value for our new stakeholders as a publicly listed company.”
Newly-appointed chairman Tony Rice said that he was delighted to join the firm “at such an exciting time” in its development.
Miller is just one of a string of high- profile names seeking to join the stock market in the coming weeks following the removal of uncertainty over the Scottish referendum result.
Motoring breakdown service the RAC is also said to be close to announcing plans to go public, while challenger bank Aldermore and luxury shoe brand Jimmy Choo (see below) have already disclosed their listing plans.