Miller Homes drops IPO plan
- Miller board “unanimous” in dropping float plan
- Virgin Money still committed to IPO
Edinburgh-based Miller Homes today announced a surprise u-turn on its long-anticipated flotation on the London Stock Exchange.
The company said that the board had decided against a public issue of shares because of “financial markets volatility”.
A source close to the company told Daily Business that the board had been “unanimous” and that there was “no compulsion on Miller Homes to come to market at this particular time”. It may make another attempt in the coming months but for the time being will build on solid trading figures to grow the company.
It is understood that the board became nervous about a flotation following a sharp deterioration in the FTSE 250 in the last couple of weeks, particularly since the bombing started in Iraq. This led the board to believe that the company would not achieve the upper end of a £450m to £550m valuation that would have allowed it to enter the index.
“The board looked at it very carefully and there is sufficient uncertainty to make it not a particularly good time to come to market,” said the source.
In its statement this morning, Miller said: “In light of the recent financial markets volatility, the shareholders of Miller Group have elected not to proceed at this time with a public offering of Miller Homes. The shareholders are excited to support Miller Homes in its next phase of growth as the company builds upon the momentum evidenced in its recent operational and financial results.”
Other companies are continuing to defy the markets. Virgin Money unveiled plans for a flotation or IPO earlier this week that is likely to value the company at about £2 billion, making it the fourth bank to join the market this year.