Ascential, which was formerly known as Top Right and runs 17 magazines including Drapers, Retail Week and fashion information site WGSN, has floated 35% of the company at 200p a share achieving the mid range of its target of an initial public offering valuing the business at up to £1bn, reports the Guardian.
GMG and Apax acquired Ascential for £1bn in 2008 when it was known as Emap.
GMG, which is the parent company of the Guardian, owns 32.9% of Ascential, with Apax controlling the remaining two-thirds. The pair sold down their shareholdings to receive about £80m.
According to the financial filing on the float GMG sold shares worth £29.3m, Apax divested of shares worth £48.8m and management and staff sold off shares worth about £1.9m.
Following the flotation, GMG owns 23.3% of Ascential, and Apax 38.9%.
“I am very pleased with the response we have received from investors towards our company, our products and our IPO,” said Duncan Painter, chief executive of Ascential. “As we move forward as a listed company, our focus will not change. We will continue to put our customers first, supporting them with market leading products specifically designed to help them secure their own growth and success.”
Ascential will use the £183m in funds raised to cut its debt burden, which stood at £410m according to the last publicly available figures, which will finally bring its debt-to-earnings down to a healthier ratio of 2.5 to one, says the Guardian.
Ascential’s most recent public financial filing shows the business made adjusted profits of £85.3m in 2014, a 27% year-on-year rise, as revenues rose 9% to £312m.
