Hogg Robinson floated on the stock market yesterday at less than 75% of the value originally intended by its private equity owner Permira.
The company blamed present market conditions for the lower value, which was suppposed to be £380m.
The company came to market with a capitalisation of £275m, raising £180m to pay off debt, help cover a pension fund deficit and fuel expansion.
Reports in the Guardian said Permira’s stake in the company has gone from nearly 90% to around 18%, while an 11% holding controlled by Radcliffe and his management team will be reduced to 2%.
In the year to March 31, Hogg Robinson reported revenue of £298m and earnings before interest, tax, depreciation and amortisation of £44m.
Chief executive David Radcliffe said: “We believe the listing will raise our profile as a global support services company which operates in the corporate travel and related services market. The listing will also enhance our strategic flexibility as we move into the next phase of the company’s development.”
By Bev Fearis
