CNG flotation to raise $32.5m
CNG's prospectus, released yesterday evening, reveals it will raise $32.5m in equity from the sale.
The company's stockbroker, Evolution Beeson Gregory, expects the company to be valued at $120-$140m when the initial public offering takes place next month.
CNG is based in Kenmare and run by chief executive Finbarr Power, who formed the company in 1999. Mr Power was the owner of International Translation & Publishing which he sold to Jim Flavin's DCC group for $5m in 1997.
The prospectus reveals the bulk of CNG's turnover is generated from its US-based subsidiary Tzell. CNG acquired 80% of Tzell in July last year for $25m and will purchase the remaining shares in Tzell for $7.5m, using the funds raised in the IPO.
CNG Travel is estimated to have earnings before interest and tax of $5.1m in 2003, rising to £11.5m this year on turnover of $62m.
CNG employs 55 people in Kenmare and a further 60 at Tzell in the US. It provides access to more than 16,000 hotels in 133 cities around the world.
