Keepmoat Homes, the curiously named housebuilder, is expected to have another stab at floating after its first attempt was kiboshed by the first coronavirus lockdown.
The Doncaster-based builder’s private equity owners have hired investment banks Barclays and Moelis to explore a so-called ‘dual-track’ – either a flotation or a private sale – process for the company, Sky News reported.
Last week, The Yorkshire Post quoted the company’s chief executive, Tim Beale, as saying the initial public offering (IPO) option is still on the table. The company had been considering a public listing before the coronavirus pandemic hit the UK.
As it turns out, the pandemic has been kind to Keepmoat, which specialises in new builds for first-time buyers. Beale said the pandemic had boosted demand in its market, helped no doubt by the government’s stamp duty holiday.
The company is no stranger to economy-shattering events, having been bought for GBP783mln in 2007 in a deal backed by the Bank of Scotland’s integrated finance division, just as the financial crash was unfolding.
Lloyds sold it to its current owners, private equity outfit TDR Capital, in 2014.
According to Sky News, the company’s valuation on listing could be between GBP700mln and GBP800mln, little changed from its 2007 valuation.
Following the latest government announcement, construction will continue on all our sites across England and Scotland, and our show homes and sales centres will remain open. Visits are by appointment only.
Read more here: https://t.co/10a7e9qSeC pic.twitter.com/HhDs4PdfTt
— Keepmoat Homes (@KeepmoatHomes) January 5, 2021