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Smart meter firm Calisen seeks $1.8bn IPO

By Lawrence Gash

The company hopes to list on London Stock Exchange

Calisen Group, a leading supplier of energy smart meters to British households, has outlined its aim to sell up to £408m ($530m, €481m) of shares in an initial public offering on the London Stock Exchange (LSE).

The hope is that this deal will herald an uptake in activity following a comparatively dire 2019. Before December’s general election provided greater clarity as to the direction of Brexit and the public appetite for radical socialism, UK listings fell to their lowest level since 2009.

Calisen hopes to float around a quarter of the company at a price range of 225–265 pence per share. This would give the company a market value of at least £1.25bn, which could rise as high as £1.42bn should it implement a "greenshoe" option and sell an additional 3.75 per cent of shares.

Bought from the infrastructure investment company Infracapital in 2016 by the major private equity firm KKR, Calisen is itself made up of two businesses. Through Lowri Beck it carries out maintenance services, meter readings and installations, while under Calvin Capital it manages a portfolio of domestic electricity and gas meters.

KKR will hope that the IPO will raise enough funds to repay Calisen’s debts but also to facilitate the company’s increased smart meter roll-out.

There are now more than 14 million devices operating in the United Kingdom thanks in large part to the UK Government. Keen to monitor energy consumption and to ensure that consumers are securing a fair deal from their suppliers, the Government has spearheaded the adoption of smart meters.

Only this month the Government energy regulator Ofgem threatened to strip nine suppliers of their licences if they failed to join their approved smart meter scheme.

Announcing the IPO plans, Calisen chairman Phil Nolan stated: "We expect new shareholders in the company to benefit from Calisen’s strong position in Britain’s smart metering segment and compelling financial track record with dynamic growth, and the skill and deep sector expertise of an experienced management team.”

KKR has hired Credit Suisse, KKR Capital Markets, Citigroup, HSBC, Barclays and Goldman Sachs to oversee the listing.

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