Health IT system supplier EMIS has announced that it expects its shares to be trading on the London Stock Exchange’s Alternative Investment Market by the end of this month.
The company has published its ‘pathfinder admission document’ for the planned flotation. This aims to raise £50m, with £25m in new shares issued to institutional investors and a further £25m of shares owned by existing shareholders sold to investors.
The money generated by the issue of new shares will be used to repay a £23m loan from the founder shareholders. The company expects to have a post-float market value of £200m.
The company announced its intention to float on AIM last month and the pathfinder admission document, which is used to assess the level of demand from potential investors, sets out more information about the company and its intention.
The Leeds-based firm generated at operating profit of £15.8m on revenues of £57.7m in 2009 and says it has a market share of 52.4% in the UK and 59% in England.
The document sets out the company’s strategy for growth, which it says is will be focused on targeting potential new GP practice users, providing additional products and services to GP practice nurses, rolling out EMIS Web across other extended primary, community and secondary sectors, and rolling out EMIS Web to its existing GP practices and other GP practices.
The company says EMIS Web is being trialled by non-GP users across a variety of healthcare teams in 14 primary care trusts and that it is planning for a commercial roll-out of EMIS Web to GP practices “towards the end of 2010”.
Last month, the company confirmed to EHI Primary Care that first of type testing for Release 3.0 of EMIS Web is due to begin next month.
The company said its directors were seeking admission to AIM because they believe its enhanced disclosure and corporate governance regime would give the company “even greater credibility in its discussions with government and organisations within the public sector.”
Sean Riddell, EMIS chief executive, added: “EMIS benefits from a leading market position built on a loyal customer base in response to GP practice requirements for simple to use, scalable data systems.
"A flotation on AIM will signal a new chapter in the group’s development, enabling us to further incentivise management and build on our strong position by taking advantage of the growth opportunities available to us.”
EMIS said it had been trading in line with the board’s expectations since December 2009 and intended to pay an interim dividend of £3.25m in October 2010.