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Owners of Nexus Infrastructure set for £30mln windfall when it lists on AIM next week

Nexus will place 18.9mln shares at 185p as part of its IPO next Tuesday, which will give the company a market cap of £70.5mln
fork lift truck at a building site
Even after the IPO, Morris and Breen will retain a 43% stake in the company they've built together

The two owners of Nexus Infrastructure PLC (LON:NEXS) are set for a massive payday when the infrastructure services provider lists on AIM next week.

Chief executive Mike Morris and key account director Keith Breen currently own just over 85% of the firm’s shares between them, but they’re offloading half of these to institutions as part of next Tuesday’s (11 July) initial public offering (IPO).

Selling shareholders to net £35mln

The two men, who have run the Essex-based business together for the past 17 years, will bag around £29mln from the sale, while several smaller shareholders are also selling their stakes.

In total, 18.9mln Nexus shares are being placed at a price of 185p apiece to raise £35mln for those investors, which gives the company a total market capitalisation of £70.5mln.

Even after the IPO, Morris and Breen will still hold a combined 43% stake in the business, although they’ve agreed to not sell any more shares for at least one year.

As well as allowing those long-term backers to realise some of their investment in the company, Nexus said an AIM listing will boost its profile, provide it with access to the capital markets and allow it to offer key personnel share-based incentives.

‘Important milestone’

“We are delighted to announce the pricing of our IPO and forthcoming admission to AIM,” said Morris.

“This is an important milestone for the group and the start of our life as a publicly quoted company.

“The directors and senior management team will retain a significant shareholding in the company and will be fully aligned to the interests of all stakeholders and the future success of the business.”

Two divisions: Tamdown and TriConnex

Nexus – which counts nine of the top ten housebuilders among its customers – is made up of two separate divisions: Tamdown and TriConnex, both of which operate across the south of England.

Tamdown is a provider of specialised infrastructure services, such as carrying out earthworks, creating drainage systems and building highways.

TriConnex, on the other hand, designs, installs and connects gas, electricity, water and more recently fibre networks on residential and commercial developments.

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