Luceco's £200 million float to spark London's IPO market

A British electricals business is set to light up London’s flagging IPO market with a £200 million float, sparking a £50 million payday for its private-equity owner, the Evening Standard has learned.

Luceco, a company which makes LED lights, plug sockets and wall mounts for TVs, is hoping to raise £25 million from the float.

Sources said the value of the flotation would be in the middle of the range at £200 million. The firm has annual sales of more than £125 million.

EPIC Private Equity will sell around half of its near-50% stake, pocketing £50 million from the share sale, which could be as early as next week.

News of the float comes a day after Britain’s biggest fitness chain Pure Gym pulled its £500 million listing, blaming market conditions.

Last week, the private-equity owner of Krispy Kreme UK scrapped a London float in favour of a sale to the US parent company.

But Misys and Biffa have unveiled plans for sizeable listings in London.

In 2005, EPIC, which also owns upmarket tea maker Whittards, invested just £4.3 million in a management buyout of Luceco, then known as Nexus Industries.

The £25 million proceeds from the float, being run by stockbroker Numis, will be used to halve the Telford-based company’s net debt.

Chief executive John Hornby is also expected to enjoy a multi-million pound payday.

Luceco and EPIC declined to comment.