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Under the radar

An IPO without publicity’s glare has advantages. Investec’s Andrew Pinder takes us through the ‘stealth IPO’ of financial services outsourcer, Sanne.

What was the deal?

Sanne Group’s admission to the LSE’s Main Market. The specialist fund administration business raised £142m and had an initial market capitalisation of £232m. It was unusual in that we combined a sole adviser role, with a ‘stealth’ approach – two techniques we specialise in.

How does a stealth IPO work?

The deal is only presented to the market when complete. We don’t do intention-to-float announcements, so we don’t have a published price range in that sense. There is a cleaner negotiation, rather than it being a case of ‘here is a price’, and then ‘fingers crossed we get there’. The price is less influenced by external factors, and investors by media speculation. There is not the publicity of a usual listing, but in reality retail investors were unlikely to go for a fund administration business IPO.

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