Wood Group plans £1bn float

PETROLEUM services provider John Wood Group plans a £1bn float on the London Stock Exchange next month, generating a windfall of up to £50m for the family of founder Sir Ian Wood.

The Aberdeen-based group, which engineers and manages oil and gas projects around the world, is expected to raise about £150m of new money in a listing scheduled for late May or early June.

Sir Ian and his two sisters will cut their combined stake from 60% to about 45%. Institutions are expected to hold a similar interest, leaving management with about 10%. The float, which will enable Wood Group to capitalise on the strong oil price, will make the company the biggest oil services company on the London exchange.

The price-induced recovery in oil-industry activity underpinned a 56% rise in Wood Group's operating profit to $103.7m (£72m) last year. Revenue was $1.5bn, about double that of two years ago.

Sir Ian, who was a member of the oil and gas industry task force set up to advise the Blair Government, is thought to be one of the six richest people in Scotland.