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Hardware & electrical equipment

Softcat shares continue good run on London debut

Softcat got off to a good start in London life as shares advanced further as full trading of the shares began on Wednesday.

Softcat (LON:SCT), the group which resells software from the likes of Apple and Microsoft, got off to a good start in London life as shares advanced further as full trading of the shares began on Wednesday.

Conditional dealings began on November 13 and rose to 280p a share having been priced at 240p.

Today, they nudged up further to 282p each as all 196mln shares began trading.

The firm raised around £153.4mln in an initial public offering on the London Stock Exchange after its founders and senior managers sold off shares worth around 32.5% of the capital, valuing the group at around $472mln.

It continues a run of high value UK tech listings, with share administrator Equiniti announcing plans to float later in the year.

It also follows on the heels of security software firm Sophos and payments giant Worldpay.

Softcat chief executive Martin Hellawell said last week: "The successful pricing of our initial public offering on the London Stock Exchange reflects the very positive response we have received from institutional investors as we have shared our equity story in recent weeks.

"We are delighted with the outcome of the IPO process thus far and now look forward to fully focusing on the running and future development of our business."

The firm was founded in 1993 and by 1997 had become the largest supplier of Microsoft Open software licensing in the UK.

Softcat has expanded its customer base beyond small-to-medium-sized business to include public sector customers and enterprise customers and has opened regional offices in Manchester, London, Bristol and Leeds.

In the three years to end July, 2015 revenue increased from £395.8 million to £596.1 million and adjusted operating profit from £28.1 million to £40.6 million.

Softcat's average cash conversion rate for the three years ended 31 July 2015 was 109.2%, it has said.

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