Softcat founder Peter Kelly set for £60 million float bonanza

Peter Kelly, founder of the 22-year-old software reseller Softcat, is set to cash in around £60 million when it floats next month.

Kelly, 59, who describes himself as a “weird and eccentric entrepreneur” presently owns 52% of the business which is expected to be valued at £500 million when it lists.

Unusually, the company is raising no fresh capital through the float because it has no debt and is strongly cash generative.

Instead the stock market listing will enable Kelly and other staff shareholders to cash in part of their holdings.

Aside from Kelly, staff together own 24% of the shares with a “handful” set to become paper millionaires on flotation. Chief executive Martin Hellawell has a 12% stake.

Softcat sells software, hardware and IT services to a growing client base of small and medium-sized businesses. In the year to July it made operating profits of £40.6 million on revenues of £596 million.