HSS Hire IPO: Deadline for share applications looming

Retail investors have until Monday to take part in the upcoming initial public offering (IPO) of HSS Hire, according to the company prospectus. The tool and equipment hire company unveiled its listing plans earlier this month, saying that it would price its shares between 210p and 262p.

Monday would mark the deadline for applications by private investors who want to take part in the HSS Hire IPO. While the share offer is mainly open to institutions, retail investors can participate via the group’s intermediaries offer.

The company is expected to unveil the final pricing, as well as the offer size on Thursday, ahead of the open of the London market which would mark the start of conditional dealings. Admission to trading on the London Stock Exchange’s Main Market and start of unconditional trading are scheduled for February 9.

HSS Hire has set a price range of between 210p and 262p per share for the IPO, which implies a market capitalisation of around £365 million at the mid-point of the range.

The company, which is considered the second biggest tool hire provider in the UK after blue-chip rival Ashtead (LON:AHT), aims to raise £103 million to reduce its £200 million debt and meet costs of the offering. The group’s post-IPO plans include growing its network from over 265 to 500 locations across the UK and Ireland.

The HSS Hire IPO would be the first major London float this year, and will be followed by the listing of infrastructure group John Laing which plans to return to the public market following eight years of private ownership.

Both IPOs will include a retail element and will test investor appetite for floatations after a record 2014. According to Bloomberg data, London was the busiest IPO market in Europe last year, with companies raising about $30 billion (£20 million) from equity sales.