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Electra Partners Europe to float Premium Credit

Electra Partners Europe is preparing to float specialist finance group Premium Credit in what is likely to be one of the largest new listings in the London market this year.

Electra acquired Premium Credit from HSBC in 1996 for £223m, of which the equity component was £51m. The finance group is likely to be valued at between £150m and £250m, according to the Financial Times.

If successful, the public listing of Premium Credit will represent a considerable achievement for Electra. Exit conditions have been tough for private equity firms since the high-tech bubble burst in 2001, and initial public offerings in particular have been extremely scarce.

But according to a report released by PricewaterhouseCoopers last month, the European market for IPOs may finally be turning a corner. In the second quarter of 2003 there were 23 IPOS on Europe's principal exchanges, a 64 per cent increase from the 14 flotations in the previous quarter.

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