x

Abu Dhabi, UAEFriday 22 June 2018

Bakkavor's London IPO is back on

A week after the listing was shelved, the fresh food preparer has agreed to go ahead once more

Bakkavor said on Friday it plans to sell shares set at 180 pence each - news that will boost Britain's market for initial public offerings. Neil Hall / Reuters
Bakkavor said on Friday it plans to sell shares set at 180 pence each - news that will boost Britain's market for initial public offerings. Neil Hall / Reuters

The London initial public offering of fresh-food preparer Bakkavor Group, pulled only a week ago, is back on track.

The company agreed to go ahead with the deal at a lower price than it previously targeted, according to sources.

The company said Friday it plans to sell shares set at 180 pence each, which would give it a market capitalisation of £1.04 billion pounds (US$1.37bn).

A week ago, Bakkavor said it would not proceed with the offering, joining UK communications-infrastructure provider Arqiva Group in scrapping an IPO amid volatility in the London market.

Bakkavor previously set 195 pence a share as the bottom-end of its target IPO price range, according to a person familiar with the matter, who asked not to be identified

_____

Read more:

London IPO market hit as Arqiva and Bakkavor pull floats

_____

The company revived its IPO plans after being approached by a number of institutional investors, the person added.

Bakkavor supplies UK grocers with salads, desserts, pizza and other prepared meals and has benefited from growth in fresh foods as consumers seek healthier diets.

Customers include Tesco and Marks & Spencer Group. The offer represents a stake of about 25 per cent of the company, which is controlled by Icelandic siblings Agust and Lydur Gudmundsson.

Trading will start on November 16, the company said.