On the plus side flotation was a way of obtaining access to
capital for growth, and gave Vibroplant an opportunity to
enhance its profile. On the down side the increased publicity
resulted in some unwanted attention. As a reserved, privately-
owned company, Vibroplant had made a niche for itself as a
highly successful non-operator plant hire specialist. By
becoming a public company, with consequential information
disclosure, it caught the attention of businesses in the same
sector. Suddenly non-operator plant hire was seen as a
lucrative proposition and, inevitably, the resulting competition
subsequently affected the company’s fortunes.
At the time of the stock market launch in 1973,
Vibroplant plc was valued at an impressive £8.6m and
Geoffrey negotiated a price of 143 pence per share with its
brokers. However, they reneged on the deal blaming weaker
market sentiment. Not to be deterred or browbeaten into a
lower price share, Geoffrey appointed new brokers Edward
Bates and Sons Limited in association with Greene and
Company who agreed to broker the flotation at the original
price. Unfortunately 83% of the shares were left with the
underwriters. Despite an initial negative reaction from the
financial press, Vibroplant’s flotation was a success. Growth and
profits continued and Vibroplant secured pole position as the
market leader in non-operator plant hire.
25
(above & below)
Stock market flotation
CHAPTER THREE
