Shares in Runcorn-based textile services provider, Johnson Service Group, will begin trading on the Main Market of the London Stock Exchange at 8am today (August 1), after transferring from the Alternative Investment Market (AIM).
The group announced the move following consultations with its main shareholders earlier this year.
It said since transferring its listing to AIM on June 10, 2008, JSG has demonstrated an impressive commercial and financial track record, strong shareholder returns and built a broad and supportive shareholder base.
The board said it was cognisant that AIM had served the group well over many years and considered, in detail, the rationale for a move‐up from AIM to the Main Market.
But it concluded that admission would allow for access to deeper pools of capital and a broader range of investors, increased liquidity in trading of the group’s shares, and enhance its corporate profile.
When trading on the Main Market begins at 8am, the group’s Ordinary Shares will be cancelled from trading on AIM.
JSG does not intend to raise any funds or offer any new Ordinary Shares in connection with admission and admission will be effected through an introduction of the Company’s existing Ordinary Shares.
Following admission, the Ordinary Shares will continue to be registered with their existing ISIN of GB0004762810 and the TIDM will continue to be JSG.
On admission, the company’s issued ordinary share capital will be 398,225,982 Ordinary Shares.
In March this year the group announced it was intending to return up to £30m to shareholders by way of a share buyback and, subsequently, a £15m share buyback tranche was commenced on March 5.
By June the buyback programme had deployed £10.4m, but the company then announced that it was extending the programme by a further £15m, making £30m in total as part of an extended buyback programme scheduled to end no later than December 31, 2025.
JSG confirmed today that the extended buyback programme will remain active when the group’s Ordinary Shares are admitted to the Main Market.