MDIS McDonnell plans pounds 150m public equity issue

THE COMPUTER group MDIS McDonnell plans to raise pounds 150m through a public offering in March. The flotation is expected to value it at between pounds 200m and pounds 250m, writes Mary Fagan.

MDIS, formed by a management buyout last year, had been part of McDonnell Douglas, the US aerospace group, since 1979. It has increased earnings every year despite problems in the computer market.

The company said a large part of the issue would be new equity although existing shareholders would have the chance to sell some shares. Part of the money raised will pay off debt related to the buyout.

MDIS has appointed Baring Brothers as its merchant bank and NatWest Wood Mackenzie as brokers to the issue. Last year MDIS had an operating profit of pounds 22m, compared with pounds 19m a year earlier.