Lords Group Trading PLC (LON:LORD) is to join AIM following a placing at 95p that will raise £30mln in new money and £22mln for existing shareholders.
Based on the placing price, the building supplies business will be valued at £150mln.
Lords specialises in building, plumbing, heating and DIY goods that it supplies to local tradesmen, small to medium-sized plumbing and heating merchants, construction companies and the general public in two divisions with 80% of sales coming from the Repairs, Maintenance and Improvement (RMI) market,
Merchanting is focused on 'light side' (building materials and timber) and 'heavy side' (civils and landscaping), through 24 locations in the UK, while heating and plumbing operates from over nine locations and offers a nationwide next day delivery service.
Lords was established over 35 years ago as a family business with its first retail unit in Gerrards Cross, Buckinghamshire and now has 33 sites with a combined turnover in excess of £288mln.
The group aims to become a £500mln turnover building materials distributor group by 2024 as it grows its national presence.
Shanker Patel, chief executive, said: "The RMI market, in particular, has huge potential and is supported by a number of short, medium and longer-term growth drivers. We look forward to continuing to grow our business as a publicly quoted company."