Ibstock brick maker to float on stock exchange
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Ibstock who currently have 40% market share have unveiled plans to float on the stock exchange
“There are high barriers to new brick capacity, including access to clay reserves and manufacturing sites with appropriate planning permissions and the technical “know how” to procure and commission the plant and equipment required to manufacture bricks.
“The Directors believe the Group is well positioned to take advantage of these attractive market fundamentals
“Ibstock will continue to be the leading brick supplier in the UK, with a critical role in the new housing supply chain through its clay and concrete products.
“The construction of a soft mud manufacturing plant on its current Leicester factory site is expected to increase its UK brick production capacity by approximately 100 million bricks per annum, which is expected to be commissioned in the second half of 2017, and is expected to produce for sale approximately 30 million, 75 million and 95 million bricks in 2017, 2018 and 2019, respectively.”
Ibstock was bought by American private equity firm Bain Capital from CRH in February for £414m.
The float will involve selling 25% of Bain’s shares in an initial public offering to raise £100m with the final valuation of the company expected to be around £1bn.
Wayne Sheppard, CEO of Ibstock, said: “Our markets are benefiting from a powerful alignment of growth factors.
“In the UK, a long-term undersupply of new homes compounded by strong population growth and rates of household formation has created substantial unfulfilled demand for new housing.
“This demand is now being supported by wide-ranging Government initiatives to help increase new home supply.
“With UK brick demand now exceeding current manufacturing capacity, a significant opportunity has been created for a UK manufacturer to expand capacity.”