QinetiQ shares jump on first day of trading - Embedded.com

QinetiQ shares jump on first day of trading


LONDON — The shares of QinetiQ completed their first day of dealings on the London Stock Exchange with a price of 213p, up on the debut pricing of 200p which was near the top of a 165-205p price range set by QinetiQ in January.

The floatation raised nearly £620 million and the U.K. Government will receive about £290 million pounds from the sale of a stake which is dropping to 23.9% from 56%.

U.S. private equity firm Carlyle, who bought a 30.5% stake in 2003 for £42 million saw its holdings increase in value about eight times, collecting around £180 million and cutting its stake to 13 percent.

By 12:30 p.m. the stock was up 7.5% at 215p, giving QinetiQ a stock market value of nearly £1.4 billion.

The flotation was around six times oversubscribed, with 6 percent of the shares on offer allocated to private client brokers.

Qinetiq appointed brokers for the IPO in August 2005 and released the timing and details of the float a month ago.

Sir John Chisholm, Chairman of QinetiQ, said, “I am delighted with the level of interest shown by investors in this offering and by their appreciation of the potential of our business model. I am especially pleased by the response of QinetiQ staff to the opportunity to invest in their business, and by the breadth of interest shown by the whole investment community. With the resources provided by this offering we look forward to progressing our ambitious plans.”

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