The chief executive of John Laing has said the company plans to raise £130 million ($A240m) in an initial public offering in London, returning the UK infrastructure investor to the public markets after eight years in private hands.
The proceeds will be used to fund investments and for general corporate purposes, John Laing said. The company said it intends to pay a "base dividend" of £20m for 2015. After that, it plans to pay dividends at least matching the rate of inflation alongside additional payouts of 5 to 10 per cent of the proceeds of disposals.
Originally a construction company, John Laing sold its construction arm in 2002, having suffered cost overruns on the construction of Cardiff's Millennium Stadium, to focus on investing in government-backed infrastructure projects. It was acquired in early 2007 by Henderson after the investment manager saw off rival bidder Allianz. Henderson Infrastructure Holdco will sell part of its stake in the IPO.
The company's growth prospects depend on more infrastructure work being financed via the public-private partnership model as governments around the world grapple with population growth and creaking infrastructure.
"We clearly have the opportunity to scale up the business, mainly in Australia and the United States," Chief Executive Olivier Brousse said in an interview.
"There's an obvious need for more infrastructure capacity. The second thing is that governments and public authorities are struggling, either with funding or delivery. Public-private partnerships are not only about funding, they're also about the ability of the private sector to manage complex projects," he added.
John Laing's business has historically been concentrated in the UK, but most of the value of its £1.1 billion pipeline of future projects comes from other countries. Projects include the 60,000-seat Perth Stadium in Australia and the I-4 highway widening project in Florida.
"In the US, you've got 35 states that have passed PPP legislation recently," Mr Brousse said, adding that he expects the US to become the biggest geographical market for the PPP model.
John Laing reported an operating profit of £120.6m in the first nine months of 2014. Its portfolio of 44 investments in 10 countries -- roads, railways, and urban redevelopment projects financed by public-private partnerships, as well as renewable energy infrastructure -- was worth £781m on September 30.
The company also had £965m of third-party assets under management. John Laing's asset management arm provides services to two listed funds, John Laing Infrastructure Fund and John Laing Environmental Assets Group.
The company bolstered its board in December in readiness for the listing with the addition of three non-executive directors, including Jeremy Beeton, who served as director general of the London 2012 Olympic and Paralympic Games.