ICM floats to secure growth

ICM bids to buy out its institutional investors in plans for a high-profile future. Wale Azeez reports.

ICM, a North England Compaq reseller, is floating on the London Stockrofile future. Wale Azeez reports. Exchange, in a bid to buy out its institutional investors and secure longer term funds for its growth and push into services.

The move follows an initial placing of 10,187,170 shares at 180p to institutional investors on 13 May, which raised #18.3 million. Dealings in ordinary shares on the Stock Exchange are expected to commence on 21 May at 180p, valuing the company at #34.3 million. The float is sponsored by Henry Cooke Corporate Finance and the broker is Henry Cooke Lumsden Plc.

Since 1988, investment in the company has come from two institutional investors: the Anglo-European Special Operations (AESOP) Fund and Yorkshire Fund, which are coming to the end of their terms.

Chief executive Barry Roberts said buying the equity back from the investors directly using company funds would adversely affect ICM's working capital. As a result, a placing and full listing were therefore more appropriate.

'Neither of them are in the position to fund our future growth,' he said.

He added the reseller wanted a higher profile which it would achieve as a quoted company.

Roberts said the proceeds from the flotation would be used to expand ICM's disaster recovery operations in North England by setting up locations in Manchester and Leeds, as well as injecting funds into the firm's remote network management business.

He stressed there were no imminent acquisitions, as the company had made a number of purchases in recent years. 'But acquisitions remain a part of our strategy,' he added. Last year, ICM bought Palm Computer Systems.