Druid Group is to float, aiming for a full listing on the London Stock Exchange at the end of November this year.
“We are only selling 60 per cent of the shares,” said David Thompson, Druid’s managing director. The remainder will be retained by the management as its own shareholding.
Thompson believes the listing will help Druid with its recruitment drive.
He hopes that the option of share ownership will attract a greater number of consultants.
“We are hoping to use the placing to expand share ownership and are setting up employee option schemes, which will allow consultants to invest in the company,” he said.
Most of the money raised will go towards paying off the venture capitalists that currently have a 50 per cent share in the firm, while the rest will be used for investment in the UK.
“About #5m or so will be left, leaving some leeway to invest,” said Thompson, who added that there was potential for an acquisition, “but the firm would have to be synergistic with our current business in the UK,” he said.
Druid, which increased its pre-tax profit by 130 per cent to #3m and turnover by 94 per cent to #12m in the year ending June 1996, expects market capitalisation to be around #60m.
“The total IT spend is expected to rise to between 15 and 20 per cent in the UK, and we would like to get some of that,” said Thompson. “We are very strong in SAP and are looking at Oracle, SSA, Barn and PeopleSoft.”