Cerillion plc, a billing software company, has told investors it will float onto London’s AIM market at the end of this week.
The company, which was previously part of Logica plc, confirmed today that it has priced an initial public offering (IPO) which raises £10mln and values the business at £22.4mln.
It comes to the AIM market with a roster of blue-chip customers including Cable & Wireless, as well as Japanese telecoms group KDDI and South Africa’s MTN. Altogether Cerillion has 75 customers installations across 40 countries.
The west London headquartered group has 164 staff, including 79 employees in India.
In 2015, twelve months to Sept 2015, it had £2.9mln of earnings (EBITDA) on £14mln of revenue. It generated £8.5mln of cash in the past seven years.
Placing new shares at 76p each, the software group’s IPO will raise £10mln. The listing is expected to increase the company’s profile and potentially allow it to capitalise on new opportunities, via mergers and acquisition.
“The company's admission to AIM represents an important milestone for the business, helping to increase our profile and improve our market positioning,” said Louis Hall, Cerillion chief executive.
“As we look forward, we intend to grow the business, principally organically, winning new customers for our core enterprise product suite.”
Cerillion told investors that it intends declare a maiden interim dividend, and its dividend policy will be to pay-out between 33% and 50% of free cash flow each year.