£400m flurry of flotations shows market still appeals

THREE companies have announced plans to raise more than £400 million through stock market flotations, delivering a shot in the arm for troubled markets after a series of aborted initial public offerings.

Fashion retailer SuperGroup, which owns the Cult and SuperDry brands, is issuing shares worth 125m in a partial float, while healthcare software business Emis plans to raise 50m and educational whiteboard maker Promethean aims to sell half of its share capital to bring in 250m.

Commentators said yesterday's announcements showed there was still an appetite for smaller-scale launches despite several major flotations being pulled in recent days because of market turbulence – including fashion retailer New Look, Merlin Entertainments, which owns the Alton Towers theme park, and travel services firm Travelport.

SuperGroup has 40 standalone stores in the UK – including branches in Edinburgh, Aberdeen, Glasgow and St Andrews – and 54 concessions in department store chain House of Fraser.

The stock market debut is expected to realise hefty windfalls for founders and management.

The firm's sales almost doubled in the 26 weeks to 1 November. Its clothing has been worn by the likes of footballer David Beckham, actor Zac Efron and model Helena Christensen.

The partial float values the overall firm at about 400m. It is currently owned outright by management, led by founder Julian Dunkerton, 44, who has a 53.1 per cent stake. He built up the business from a market stall in Cheltenham more than 20 years ago.

Brand and design director James Holder, who started the Bench clothing label, and wholesale and international head Theo Karpathios own 19.8 per cent each, with the remainder spread among fellow senior managers.

It is thought that Dunkerton will retain a significant stake following the float, which is expected to take place by Easter.

In a retail sector note, analysts at KBC Peel Hunt said: "SuperDry is clearly one of the brands of the moment, enjoying a strong growth profile over recent years.

"While the business is clearly riding the fashion wave at present, management will need to convince investors that the brand offers longevity."

Meanwhile, white board maker Promethean has benefited from strong growth in education spending during the past decade.

As of the end of 2009, the Blackburn-based company's equipment was being used in 550,000 classrooms in 100 countries, helping to educate more than 12 million children.

Leeds-based Emis employs almost 800 people and was set up in 1987 by two GPs who saw a need to computerise patient records, which were then kept on paper at surgeries.