Northeastern radiator company Stelrad rates shares ahead of stock market launch


Northeastern radiator maker Stelrad valued its shares at 215p ahead of its launch on the London Stock Exchange.

The Newcastle-based company, which confirmed its intention to go public last month, said that based on the offer price, the company’s total market capitalization at the start of trading in the main market will be around £ 274million.

The issued share capital of the company will be 127,352,555 ordinary shares, of which approximately 11.6 million will be issued by the company to raise gross proceeds of £ 25 million, and 32,558,130 existing ordinary shares will be sold by The Bregal Fund III L – the main shareholder – and certain members of the management of the company, which represents a total supply of around £ 95million.

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Subject to admission and other conditions met, the company will be considered eligible for inclusion in the FTSE UK indices.

Trevor Harvey, Managing Director of Stelrad, said: “Today is an important day for Stelrad as we start our life as a public company and move into the next stage of our development. I would like to express my sincere thanks to everyone who helped us get there, including our invaluable and hardworking employees.

“We have been encouraged by the level of support received from investors who recognize the solid foundation on which the business is built and the platform for growth that we have created. Our goal remains to exploit the range of organic and inorganic growth opportunities offered, continuing to focus on improving our broad product offering and the strong relationships we have with leading distributors and specifiers.

“Along with this, we are also excited about the favorable market environment and the important role we can play as the world decarbonizes. “

The company, with origins dating back to the 1930s, manufactures and distributes steel panel radiators in the UK, Europe and Turkey, selling a range to over 500 customers through its four main brands, Stelrad, Henrad, Hudevad and Termo Teknik.

The company, which last year held around 16.6% market share in the UK, Europe and Turkey, including 50.2% in the UK, has manufacturing and distribution facilities in Mexborough in South Yorkshire, Nuth in the Netherlands and Çorlu in Turkey, employing 1,325 employees across the company, as of December 31, 2020.

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