After one of the toughest years in the history of Initial Public Offerings (IPO), it seems companies are settling into the new decade more confidently than in the last. Calisen Group, one of Britain’s largest suppliers of smart meters to households all around the UK is gearing up for a London listing later this year.
In a test of investor appetite after a slow year, the company seeks to settle at a valuation of 1.3-1.5 billion pounds, and lost at the London Stock Exchange, a close source said.
In a statement, the smart meter dealer said it was targeting to raise approximately 300 million pounds from the issue.
Calisen is planning to have its share sale go live in February, an undertaking that will also see some existing shareholders surrender their shares for sale.
The handlers of the IPO are confident of a well-subscribed issue after a difficult listing season.
“We have spoken to a few investors before launching, and that has given us confidence in this process. It is a domestic infrastructure asset that is not cyclical and not really affected by customer sentiment,” Calisen CEO Bert Pijls said.
A report by Refinitiv indicated that London listings dropped to a decade-low in 2019.
Calisen is comprised of two businesses: The first is Lowri Beck, which specialises in the installation, meter reading and maintenance services for clients in the retail energy sector. Then there is Calvin Capital, a unit that manages a decent portfolio of gas meters and domestic electricity.
The group’s business model is based on fitting smart meters to as many UK homes as possible, something that the government is keen on ensuring takes place across the kingdom.
The UK government is planning to have a smart meter for tracking energy installed in every home by 2024.
Calisen plans to use the funds to foster growth within the region, as well as offset debts.
“This will be a test for sentiment towards the UK, the IPO market and equities in general. Certainly, there’s an expectation there’s a clear window for the next few months before the negotiations on the trade agreement (between Britain and the EU) come more in focus,” another source familiar with proposed IPO said.