Intertek planning £660m flotation

PRODUCT testing specialist Intertek today unveiled plans for a £660m listing. Intertek, the subject of a £380m management buyout from Inchcape in 1996, hopes to raise £245m fresh equity, which will be used to halve its debt.

Chief executive Richard Nelson, whose team was backed in the management buyout by Charterhouse Development Capital, said senior management would retain a 7% stake, although junior managers would sell a 9% holding into the float.

Intertek, which runs safety and other tests on products including oils, chemicals, textiles and toys, made a £68.5m profit before interest and tax last year on turnover of £450m.

Analysts forecast a £40m after-tax profit this year, putting the stock on a prospective multiple of about 16 times, based on the middle of the 400p to 490p indicative price range.

Petroleum services provider Wood Group said it expected to be valued at £923m in its impending float. Wood Group published an indicative range of 175p to 210p.