Shares in Lords Group Trading PLC (LON:LORD) were marked around 4% higher in the opening minutes of their first day on AIM.
The specialist distributor of building, plumbing, heating and DIY goods raised a gross £52mln from the process and was valued at £150mln at the 95p listing price.
A large slug of the cash will be invested to almost double turnover to £500mln by 2024 from £288mln currently via a mix of organic and acquisition led growth.
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At the same time, chief executive Shanker Patel and his team aim to increase the net return on sales from around 5% to the 6%-7% enjoyed by larger operators such as Travis Perkins.
The fundraiser, which consisted of a primary offer of £30mln to be invested in the business and a secondary placing of £22mln-worth of stock for certain existing shareholders, was oversubscribed following strong institutional backing.
CEO Patel said: "We are delighted to have received such a positive reception from investors and look forward to beginning our journey on the public markets with our wider shareholders on board. Lords Group has always been proud of our familial culture, and we welcome our new investors and shareholders.”