AZ Electronic Materials raises £251m

Date: Friday 29 Oct 2010

Speciality chemicals manufacturer AZ Electronic Materials has set its offer price at 240p a share, which values the company at £914.2m.

AZ is raising £251m before costs and existing shareholders are cashing in £131.5m worth of shares. Those selling shareholders may get the chance to sell more if the over-allotment option is exercised over the next 30 days. The company will use its cash to help pay off debt and finance the development of new materials.

AZ produces chemicals that are used to manufacture integrated circuits, light emitting diodes, solar devices and flat panel displays. There are eight factories located in Asia, North America and Europe. AZ generated revenues of $610.6m in the year to June 2010. EBITDA was $200.3m but much of that would have been eaten up interest charges prior to the flotation.

AZ believes that floating will enhance its profile

Conditional dealings started today

AZ is obtaining a premium listing on the London market and unconditional dealings commence on 3 November.

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