Manx Telecom chief executive Mike Dee has talked about some of the behind the scenes drama that went into the company floating on the junior market of the Stock Exchange.
He revealed the board of the telecommunications company only made a final decision to go ahead with the flotation of shares a week before the planned admission date.
He said they also had another option on the table involving what is understood to be a large business concern.
He was tightlipped about which company this was and details of what this option involved. But this idea was thrown out following the success of a two week helter skelter ‘roadshow’ in which Mr Dee and finance director Gary Lamb made 62 presentations to large investors in London and Edinburgh.
Mr Dee said the huge interest shown effectively gave the green light for the board to come to a unanimous decision to proceed with AIM.
Mr Dee, 58, who has worked for the company for 30 years, is convinced the decision was the right one and is good for the island. And as well as shares being snapped up by institutional investors, individual Manx people have apparently been buying them.
Speaking to Business News from his office on the Isle of Man Business Park, Braddan, Mr Dee said eventually they might consider moving up from AIM to a full listing on the Stock Exchange in London.
Mr Dee revealed the process involving going public with shares only started last October.
He said: ‘It was discussed at a board meeting at the end of October and then from there, with the break for Christmas and a break in between, the whole thing was done in three months.
‘Legal advisors were quite stunned it could be done so quickly.
‘We started a process and what was interesting was that we were given just two weeks to market. We felt the IPO (initial public offering) on AIM was good for the Isle of Man.
‘It was quicker to do an AIM listing rather than a full listing (on the Stock Exchange).
‘When we were doing some of our presentations a number of the big investors were asking why were we not going for the full listing (on the stock exchange) and actually believed at some stage we should go for the full listing. So that’s something we have agreed to look at in the future, maybe in a couple of years time.’
‘I think the interesting thing is that Gary Lamb and I did 62 presentations in two weeks.
‘The roadshow schedule as we called it was quite an experience. I’m still a bit shellshocked.’
The whirlwind fortnight of presentations to ‘big’ investment companies all took place in the English capital apart from one day in the Scottish capital.
‘There was a lot of interest and the conclusion was that we were well over subscribed.
‘We were 1.7 times over subscribed.
‘As you go through the roadshow they all put in their bids. We mapped the book as we went through it.’
Mr Dee said it was a ‘great feeling’ to be at the Stock Exchange at 8am on Monday February 10 as trading began of Manx Telecom shares at a placing price of 142 pence.
Asked if he felt it was a good thing for the island he said: ‘There was another strong option in the run in and the final decision was made quite late that we would go the IPO route.
‘Although the pre-registration went through with the Stock Exchange there was another option that could potentially have been taken up .
‘The key point is that we had an option other than the IPO and we had a discussion on the Sunday with the executive board and the conclusion was that we felt it was right for the island (to go for the IPO).
‘It gives us the opportunity to market ourselves i n the City of London at regular intervals and it really gives a very positive message.
‘The IPO will be a new chapter for Manx Telecom as a fully independent quoted company. We were delighted with the interest received from institutional investors during the marketing exercise which will provide a solid and supportive shareholder base for the future.’
Mr Dee said the oversubscription was testament to the quality and hard work of the Manx Telecom’s 300 staff in the island.
The company’s admission to AIM followed a placing of more than 110 million shares at a placing price of 142 pence each.
Mr Dee said: ‘There has been a positive reaction from business people in the island, they see it as really good that we have got a public company on the stock market, and it is under the MANX ticker which I think is great.’
Asked if there was a danger that MT could fall prey to one large conglomerate he replied: ‘At least with being public you would know if it was starting to happen because it is disciplined. If somebody gets over a certain percentage of shares then they have to notify you.
‘It could happen but I don’t think it is likely.
‘What going public means is we aren’t going back into a private equity type of ownership. There’s always been some sensitivity about private equity ownership.
‘This means we won’t be going back into that sort of environment.’
Mr Dee said being a public company meant everything was in the public domain ‘and for me this is making us a solid company. I believe it is the best move. We are integral to the Isle of Man economy here and I think that by being public rather than private ownership is a very positive statement.’
Mr Dee said he understood some local people have already bought shares.
Mr Dee, who has not lost his West Country accent, said his take is that: ‘It has been a highly successful float, and having been here for 30 years, I firmly believe this is good for the Isle of Man and will continue to be as we run these roadshows at regular intervals and reminding people where the Isle of Man is.’
The admission to AIM came about after private equity company HgCapital Partners and CPS Partners agreed to sell all their interests in the company, providing them with a 100 per cent exit and expected to raise £67.2 million through a placing of more than 47 million shares.
The company says its market capitalisation is about £160.2m and it will trade under the ticker MANX on AIM.
Liberum Capital is Manx Telecom’s nominated adviser and corporate broker, while Oakley Capital is financial adviser.
Manx Telecom was formed in 1987. Over the years it has been part of BT, O2 and then Telefonica. In June 2010 MT was sold by Telefonica to private equity investor HgCapital Partners who worked closely with CPS Partners.
Mr Dee said: ‘We are a well-established business with strong ties to the Isle of Man and a reputation for excellent customer service, operating on an island with a resilient, growing and affluent econ omy.