Brickability cements £57m in IPO
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Brickability, a wholesaler for building materials, has recently raised £57m through an initial public offering, with Cenkos Securities acting as the nominated advisor and broker in the deal. It is the sixth high-growth company in the UK to undertake an IPO this year, and only the second in 2019 to list on the AIM (Alternative Investment Market) – the London Stock Exchange’s international market for smaller growing companies.
The Brickability group, which provides and installs a number of construction goods to contractors, developers and builders, is based in Bridgend, Wales, and also operates a number of sites across the UK. The group has seen exceptional growth leading up to the announcement, following a number of acquisitions and fundraisings to aid expansion.
The company initially appeared on the Beauhurst platform in 2016 after undergoing an MBO by specialist investor Promethean. Since then, the company has met a further two of our tracking triggers, having completed several rounds of equity investment and appearing on high growth lists. In June of last year they acquired Crest, which manufactures and sells bricks and tiles to the construction industry, complementing an 2014 acquisition of Bricklink, which also supplies a range of bricks. This was soon followed by £1.8m of secured fundraising in November 2018.
In March of this year, intentions to float circulated in the media following a city leak. Just two months later the company had secured an additional £1.24m in fundraising, soon followed by the tactical acquisition of LBT Brick & Facades, a Bolton-based counterpart that supplies facade materials to the construction industry.
In contrast, private companies in the sector operating at similar levels of turnover have seen much gentler journeys of development: Troy, a wholesaler of equipment and tools, acquired a single rival in 2018, and Arran Isle, a specialist distributor of branded building products, last raised funding in 2013.
The new Ordinary Shares released as part of the IPO on 29th August represent just shy of 40% of the company’s enlarged share capital, and place the value of the company at over £150m. The new injection of cash will enable the company to continue its high-growth success.
Intentions behind the IPO were confirmed by Alan Simpson, the CEO of Brickability, who added: “The IPO will provide a platform for our strong management team to drive forward our ambitions for growth, enabling us to expand our presence in key geographies, increase our range of suppliers and invest in our service offerings.” The announcement values Simpson’s initial stake in the company, 23.92% of shareholdings before the IPO, at over £23m.
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