Housebuilder set to sell over 40% of its shares on the open market next month

Urban Space, Miller Homes

Miller Homes has announced plans for an initial public offering on the stock market next month.

The firm said the float is expected to raise around £140m and will entail selling off at least 40% of the company on the open market.

The firm has been planning a float on the London stock market for some time and in July it sold off its construction division, in part to make the float possible.

Chris Endsor, chief executive of Miller Homes said the firm was positioned to “drive strong and sustainable growth” and to benefit from a “continued recovery” in its regional markets.

He added: “It is an excellent time to be operating in the housebuilding sector, with demand for new housing continuing to grow supported by improving macroeconomic conditions and mortgage market and a more favourable planning environment.

“We are proud of what we have achieved so far and look forward to developing our business and creating value for our new stakeholders as a publicly listed company.”

In its announcement the firm said it had a land bank of 16,553 plots on 56 separate sites and its 11.5% operating profit margin to tempt prospective investors. Miller turned over £174m in its most recent six month period, to June 2014, a 40% increase on the previous year, selling 845 homes.

It’s announcement added: “The directors believe that Miller Homes’ existing divisional infrastructure is able to support additional volumes in each of its existing operating divisions to support, in aggregate, 2,750 core completions per annum in the medium term with relatively limited additional overheads.”