Crest Nicholson shares surge on public offering

Shares in UK house builder Crest Nicholson soared Wednesday after completing the largest construction public offering (IPO) since the economic downturn.

Shares in UK house builder Crest Nicholson soared Wednesday after completing the largest construction public offering (IPO) since the economic downturn.

The company raised gross proceeds of £22.4.9m in the float - the biggest listing since Direct Line.

Crest priced its shares at 220p, the top end of its last indicated range, valuing the business at £553m. But shortly after open they climbed 15% to 253p, before dropping back to 247p at 12:20.

The float is expected to breathe life back into London's IPO market, following the worst year for deal activity since the financial crisis.

Chief Executive, Stephen Stone, said: "Having spent 39 of our 50 years as a listed company, we look forward to re-joining the public markets.

"This is the first significant IPO of 2013 which bodes well for our industry and the wider market."

Crest Nicholson, which builds upmarket homes mainly in the south of England, was taken private by a joint venture between HBOS and Scottish entrepreneur Sir Tom Hunter at the height of the property market boom in 2007.

However the group was hit by a high level of debt when house prices fell and in 2009 completed a £630m debt for equity swap.

RD

Recommended

Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022
Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022
Three Sharia-compliant growth companies
Share tips

Three Sharia-compliant growth companies

Professional investor Scott Klimo of the Saturna Al-Kawthar Global Focused Equity ETF tips three Sharia-compliant stocks.
30 Jun 2022

Most Popular

How to find the best dividend stocks
Income investing

How to find the best dividend stocks

Stocks that pay dividends tend to outperform the market over the long run - as well as providing an income. Here, Rupert Hargreaves explains the best …
28 Jun 2022
Gold has been incredibly boring to own – but that’s no bad thing right now
Gold

Gold has been incredibly boring to own – but that’s no bad thing right now

Stocks, bonds and cryptocurrencies have all seen big falls this year. But gold remains at its one-year average. It may be dull, but it’s doing what it…
29 Jun 2022
What the end of the 1970s bear market can teach today’s investors
Stockmarkets

What the end of the 1970s bear market can teach today’s investors

The 1970s saw the worst bear market Britain has ever seen, with stocks tumbling 70%. Things have changed a lot since then, says Max King. But there ar…
28 Jun 2022