Servelec Group plc announces intention to float on the London Stock Exchange’s Main Market

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30/10/2013

Lawyers from Walker Morris are advising Servelec Group plc on its proposed IPO on the Main Market of the London Stock Exchange.

The deal is one of the few IPOs on the Main Market of the LSE to be handled outside London and, as such, reinforces Walker Morris’ expertise in this specialist area.

Servelec operates from offices around the UK and internationally, with the largest number of its employees being based at the Company’s headquarters and purpose-built engineering site in Sheffield.  Since July 2000, the Company has been wholly owned by CSE Global Limited, a company whose shares are traded on the Singapore Stock Exchange.  Servelec has grown both organically and through acquisition and now operates two divisions:

  • Servelec Healthcare: specialises in the design, development and implementation of Electronic Patient Record software within secondary care settings and is a market leader in the Mental Health and Community Health sectors in England; and
  • Servelec Automation: provides complex, mission-critical control systems to large blue-chip companies mainly in the UK, focusing on the oil & gas, nuclear, power, utilities and broadcast industries.

The IPO will involve CSE Global selling its entire holding to certain institutional and other investors in the United Kingdom and elsewhere alongside the issue of new shares to eligible employees under a separate employee offer.

Alan Stubbs, Chief Executive Officer of Servelec Group plc said:

“We are very pleased to announce our intention to join the main market of the London Stock Exchange.  Servelec has a proven track record of delivery over many years, establishing a market-leading position in each of its business divisions. This is built upon the strong intellectual property and engineering heritage prevalent throughout our business, and the excellent long-term relationships we have with our blue chip customers. 

“The markets in which we operate have structural and regulatory growth drivers and we have identified numerous commercial opportunities to pursue additional growth for our business.  The present ownership structure, as part of a larger group, places a constraint on the ability of the management team to capitalise on these exciting opportunities.  An IPO is the natural next stage of development for Servelec, providing the appropriate platform to drive growth both organically and through acquisition.”

The Walker Morris team is being led by corporate partner Richard Naish.

Richard Naish commented:

“As the London IPO market really begins to open up, we are very pleased to be advising on this Main Market flotation.  We have a strong equity capital markets heritage at Walker Morris and advising Yorkshire based Servelec further demonstrates our capabilities in this area of work.  We look forward with confidence to playing our part in helping other clients with IPOs and secondary offerings to grow and expand their businesses.”

Richard Naish was supported by a team drawn from across the firm including Lee Crook (commercial), Jo Ratcliffe (pensions), Josh Kitson (environment and planning) and Jeremy Scholes (competition).

Investec Bank plc is acting as sponsor, financial adviser, bookrunner and broker to the Company.  Ernst & Young is acting as reporting accountants. Bird & Bird LLP is advising Investec.

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