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Fuel line maker TI Fluid Systems to join the fray

Another private equity-backed listing is to make its way onto the London Stock Exchange.
September 29, 2016

After a prolonged fallow period, we’re suddenly seeing a flurry of announcements of intentions to float on the London Stock Exchange. Hot on the heels of waste management heavyweight Biffa and Krispy Kreme Doughnuts (no explanation required there) comes TI Fluid Systems, a manufacturer of automotive fuel tanks and systems that move fluids throughout vehicles, such as fuel pumps and brake lines.

The private equity-backed entity plans to generate around €600m (£519m) through the public offer, which will be put towards paying down debt. The Oxford-based company, which reported revenues of €3.1bn last year, is expected to have a free float of at least 25 percent after the offer. The offer is to include a partial sale of shares held by funds advised by Bain Capital Private Equity LP, members of management and other individual shareholders, although, as yet, there are no details on how many shares will be offered, nor their expected price.

Bain Capital had originally acquired the company for about $2.4bn (£1.8bn), including debt, and is doubtless looking to derisk a portion of that capital outlay in the public sphere, a typical means of recouping investments.

Still, the proposed listing will be welcomed by the mandarins at the LSE, along with the wider City advisory complex. The dearth of first-half listings was laid at the door of EU referendum uncertainties, although given all major global bourses have been struggling, it might have more to do with the raft of low-cost funding options available due to record-low interest rates.