Stelrad has announced that it is considering an initial public offering on the main market of the London Stock Exchange, and that it intends to publish a registration document today.
Stelrad is a specialist manufacturer and distributor of steel panel radiators in the UK, Europe and Turkey, offering a range of standard and premium steel panel radiators, low surface temperature ("LST") radiators, towel warmers, decorative steel tubular radiators, and other steel "column" radiators to more than 500 customers annually.
The origins of the Group date back to the 1930s and Stelrad enjoys long established commercial relationships with many of its customers, having served each of its top five customers for over twenty years.
The Group is headquartered in the United Kingdom, and has been a leading supplier across Europe for over twenty years, with manufacturing and distribution facilities in the United Kingdom, Netherlands and Turkey, additional distribution facilities in Poland and Denmark and sales personnel in seven other countries, including China.
The Group operates mainly in the UK, the Benelux, Germany, France, Turkey, and Poland, which represent a market with an estimated value of £1,100 million, and equates to approximately 24.4 million radiators.
The Group generated sales revenue of £197 million in 2020, and delivered 5.2% compound annual growth rate ("CAGR") in sales from 2015 to the end of 2019 (which rises to 6.8% when excluding sales to Turkey).
The stock offer would comprise both new Ordinary Shares to be issued by the Listco, raising gross proceeds of approximately £25 million to repay certain existing debts (both external and with existing shareholders), and existing Ordinary Shares to be sold by existing Stelrad shareholders.
Market commentators have suggested that the business could be worth in the region of £350 million upon flotation.