Gartmore covers its 400m IPO one week before listing
ASSET management house Gartmore has covered its £400m initial public offering (IPO) after the first week of bookbuilding, indicating strong support from institutional investors.
Sources close to the deal told City PM the offering had been covered since Friday afternoon. Gartmore is expected to price its shares at between 250p and 330p on Thursday, valuing the company at a midpoint of £800m. The shares will list on 11 December.
Gartmore will raise around £280m in primary issuance, while private equity owner Hellman & Friedman and the company’s fund managers – including European equities star Roger Guy – will cash out around £120m in a second tranche.
A source said: “This is a positive story which shows how strong the UK stockmarket is at the moment.”
The news contrasts with an attempted €1bn flotation by German construction outfit Hochtief, which pulled an IPO for its industrial infrastructure business Concessions last week on the back of weak appetite.
Meanwhile, Gartmore saw $85m (£51.6m) net outflows from its funds in November as investors pulled cash from its quantitative products.