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Manx Telecom to float on AIM

 

Manx Telecom is on the verge of a new era as an independent quoted company.

The firm has confirmed it's to list on the Alternative Investment Market later this month.

The flotation on London's junior stock exchange is expected to prove popular with institutional investors, raising £156.3 million for MT.

The AIM placing at 8am Monday 10 February will see stock sold at a price of 142p per share.

The launch will provide an exit for existing shareholders HgCapital Partners and CPS Partners, raising an expected £67.2 million.

Manx Telecom says the proceeds of the placing will be used together with funding a from a new loan agreement, for the repayment of all outstanding senior debt and loan notes.

In the six months to 30 June 2013, the Group's revenue rose by 4.5% on the same period the previous year, producing a half-year operating profit of £8.5 million.

MT directors have forecast a dividend yield of 7% for the year to the end of December 2014.

CEO Mike Dee says the flotation will ensure a strong balance sheet to support the future growth of the business.

He added: “We are delighted with the interest received from institutional investors during the marketing exercise which will provide a solid and supportive shareholder base for the future.

"The over subscription for the shares is testament to the quality and hard work of our employees, and I would like to thank all of our people for their tireless commitment to the company."

 

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