The burgeoning list of companies floating on the London stock market was today joined by one of the country’s leading suppliers of specialist behavioural healthcare.
Cambian Group is expected to be valued at more than £500 million and its flotation will make millions for its US private equity backers GI Partners and founder and chief executive Saleem Asaria.
The company, which was founded only 10 years ago, employs 6000 people across 23 special schools, 35 hospitals, 188 specialist homes or day-care centres and three fostering offices. It derives 99% of its income from the public sector, mainly local authorities, and looks after children with autism, learning dificulties and behaviour problems and adults with mental health issues.
Asaria said: “Cambian’s vision is to be the highest-quality provider of specialist behavioural health services to children and adults. It is the continuous quest for quality that allows us to enable each and every one of the people in our care to achieve their personal best. Becoming a listed entity will allow Cambian access to a permanent source of capital to facilitate this ambition.”
The company is raising only £20 million of new money through the float but both GI and management are expected to sell significant stakes enabling it to have a free float of at least 50% its share capital.
Cambian’s property portfolio, most of it purpose-built buildings, is largely freehold and valued at £577 million. Last year the group had core earnings of £43.7 million on revenues of £214 million. JPMorgan Cazenove and Numis are leading the share offer.
