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Bridgepoints Stock Skyrockets After Its Ps2 9 Billion London Ipo

Bridgepoint, a private equity firm, has seen its stock jump after making its stock market debut with a PS2.9 billion valuation.
The company, which was spun off from NatWest bank in 2000, set its initial public offering (IPO) price at 350p per share for the start of conditional trading on Wednesday, putting it at the upper end of the projected range of 300p to 350p.
Nonetheless, the stock rapidly soared, rising more than 25% to roughly 440p in early trading.
Bridgepoint raised PS300 million from the IPO, which will be used to fund expansion ambitions, the next generation of funds, acquisitions, and debt repayment.
On Monday, unrestricted trading in Bridgepoint shares will begin.
Bridgepoint joins a limited group of publicly traded European buyout firms, notably 3i Group (FTSE 100), and comes at a time when private equity deals are booming.
But, fears are growing that the surge of private equity activity is taking advantage of low pricing in the aftermath of the pandemic and Brexit woes, leaving takeover targets with high debt levels as part of acquisitions.
Morrisons, the supermarket chain, is the latest to agree to a proposed private equity purchase.
Governor of the Bank of England Andrew Bailey issued a warning last week about the recent flurry of private equity purchases, stating that highly leveraged corporations are “in a lot less robust position when a shock comes along.”
Bridgepoint, which was previously known as NatWest Equity Partners, primarily invests in companies with a market capitalization of up to 1.5 billion euros (£1.3 billion) in the so-called middle market investor sector.
Sandwich brand Pret a Manger was one of its most well-known ventures, which it controlled for ten years before selling to investment group JAB Holdings in 2018.
It also just acquired a minority share in Itsu, which is thought to be worth PS100 million.
As part of the agreement, Bridgepoint will invest to help fund the expansion of 100 new Itsu locations and the creation of 2,000 jobs in the UK.
With a network of ten offices across Europe, the United States, and Asia, the buyout business manages more than PS23 billion in assets.
There are 43 partners, over 300 staff, and 170 investment professionals at the firm.

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