Shares in RHM, which makes Hovis bread and Mr Kipling’s cakes, have risen on their first day of trading after the firm was valued at more than £950m (US$1.654bn), the BBC reported.
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The shares were priced at 275 pence a share ahead of their market debut, giving RHM an initial market capitalisation of £958m. In early conditional trading, the shares rose to 296.5 pence.
The company – formerly known as Rank Hovis MacDougall – is returning to the stock market after a 13-year absence.
The firm has sold about 63% of its shares to corporate investors in the UK, Europe and the United States.
The remainder of the business will continue to be owned by private equity firm Doughty Hanson and by the company’s management.
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By GlobalDataIan McMahon, RHM’s chief executive, said he was “delighted” with the support the listing had received from investors.
“We have a clear strategy to continue RHM’s transformation into the leading UK focused food company and we are determined to create value for our shareholders by executing this strategy successfully,” he said.
RHM was taken over by Tomkins, the industrial conglomerate, in 1992.
Management led a buyout in 2000.
