Car parts maker set for float

The company sold almost 22.9 million shares at 147p per share. It is floating a 45 per cent stake in a deal that will give it a market cap of £75m when the shares begin trading on London’s Alternative Investment Market on Thursday.

CT Automotive makes interior panels and other parts such as arm rests and cup holders for end customers including volume manufacturers such as Nissan as well as luxury brands Bentley and Lamborghini. The company has two factories in China as well as manufacturing arms in Turkey, the Czech Republic and the UK.

Proceeds will be used to pay down debt, which will allow it to expand capacity in the Czech Republic and invest in a new plant in Mexico.

The company was founded in 2000 and had a strong track record of revenue and profit growth until Covid-19 caused disruption to production last year. It recovered in the first half of this year but was hit by the semiconductor shortage that plagued the automotive sector in the second half.

The UK’s new car registrations stood at 115,706 in November – a 1.7 per cent increase on the same month last year but a 31.3 per cent decline on the pre-pandemic five-year average.

Liberum Capital was the sole bookrunner and is the company’s Nominated Adviser.