HSS Hire reveals £103m IPO funding plans

Tool hire firm HSS Hire Group has announced plans to float on the London stock market from February, in a bid to reduce its debt and roll out more 'local format' stores.

The initial public offering (IPO), in which the group expects to raise £103m and to be valued at up to £600m bases on a free float of at least 25%, will include an offer of shares to institutional investors as well as retail investors.

"Having built a well-differentiated market position and a scalable business model underpinned by capital efficiency, we have an exciting opportunity ahead of us as we implement our growth plans," said chief executive Chris Davies.

"A public listing will put the business on the best footing to maximise our potential as the recovery in our markets gains momentum, enabling us to scale our model faster and accelerate our growth."

In a statement released on Monday, the group added that JP Morgan and Numis Securities will run the fundraising.

HSS Hire is the second biggest tool hire firm in Britain after Speedy Hire, employing roughly 2,900 staff and recording full year revenues of £271.6m for the year ended 27 September.

Meanwhile, the firm has also confirmed the appointment of former Sainsbury's property director Neil Sachdev as deputy independent non-executive chairman, with ex-Clifford Chance executive Amanda Burton and SIG finance director Douglas Robertson as independent non-executive directors.