Ideal Hardware Plc, the Tolworth, Surrey-based computer storage distributor, yesterday issued a pathfinder prospectus relating to its proposed listing on the London Stock Exchange by way of a placing by Charterhouse Tilney Securities Ltd. The actual prospectus with share prices will be published on July 14. Ideal is planning to sell around 35% of the company’s shares; the remainder will still be owned by the directors and staff. It is expected that the company will be valued at between #40m and #50m, so that the share offering should raise between #14m to #17.5m, but the pathfinder prospectus does not reveal how much of this is new money. The first day of dealings is expected to be July 21. Ideal is one of the UK’s larger independent distributors, with around 15% of the market, and has, since its formation in 1987, concentrated exclusively on data storage systems. This focus will continue after the flotation, say the company’s directors who have volunteered not to sell their shares until the middle of 1996 at the very earliest, as an indication of their committment. Ideal, until Monday, Ideal Hardware Ltd, had a turnover last year of #71.8m and a before tax profit of #4.6m; it has #9.4m in cash. In 1989 it had a turnover of #11m and made a loss of #26,000. Despite its rapid success, Ideal is a relatively small company by international standards, competing against large American distributors with far higher turnovers. Its directors say they know Ideal that could do bigger business in what is a rapidly growing market, but the company’s premises are too small to permit it taking on anymore sales staff which they say is crucial to it expanding its customer base. The money from the flotation will be used for capital investment in new offices and updated computer systems. Ideal believes also that it will raise the company’s profile. And it will enable the original backer, Konrad Goess-Saurau, to realise a substantial proportion of his investment.
