Midwich sets IPO date
Planned flotation on AIM in early May will provide "partial realisation" of current shareholders' investment, distributor says
Midwich's shareholders are poised for a big pay day as the distributor gears up to go public.
The Diss-based audio-visual specialist plans to float on the Alternative Investment Market on 6 May to support its growth plans and pay down debt.
It hasn't yet set a price for its IPO but said existing shareholders will "partially realise" their investment through the move.
Founded in 1979, Diss-based Midwich turned over £280.8m in its last reported financial year and has around 400 staff.
Following an ownership shake up in 2014, Midwich managing director Stephen Fenby (pictured) and connected persons owns a 59.2 per cent stake in the firm. Anthony Bailey owns 8.6 per cent, with Lee Baker, Stuart Mizon and Iain Campbell owning a 6.1, 4.6 and 4.4 per cent slice, respectively.
"Midwich is a strong and market leading AV distributor and directors believe that the IPO will provide an excellent platform support to group's ongoing growth and investment," a company representative said.
"The proceeds will be used to partially pay down debt under the group's existing facilities, complete the funding of a prior acquisition as well as providing a partial realisation of their investment in the group for the existing shareholders."
Midwich grew rapidly in the late noughties through a series of acquisitions including True Colours, Invision and Owl Visual Systems.
International expansion was to follow with the acquisitions of French outfit Sidev in 2010, RW Salt and IDT in Australia in 2012, and German Kern & Stelly in 2013.
In its fiscal year ending 31 December 2014, Midwich Group posted an operating profit of £12.6m on revenues of £280.8m. Some £90.6m sales were drawn from outside the UK.
The distributor, whose key vendors include Samsung, LG, Epson and NEC, has yet to disclose how much it is seeking to raise through the IPO, nor what it expects its market capitalisation to be.
Of Midwich's domestic peers, most - including Westcoast and Steljes - are privately held, with AIM-listed Northamber and Exertis - part of Dublin and LSE-listed conglomerate DCC Group - among the exceptions.
Alex Tatham, managing director of Westcoast, branded it "marvellous news".
"I wish them all the best on their IPO adventure. I think these things are excellent for the channel, as Softcat's was last year. It's marvellous for all concerned," he said.
"We like being privately owned ourselves. The fact is we can act more flexibly as a privately-owned business, and it suits us very well. Noone can really say what is the right method of funding - as long as you have access to plenty of it."