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Smart meter firm Calisen aims for $1.8 billion London IPO

By Rachel Armstrong and Pamela Barbaglia

By Rachel Armstrong and Pamela Barbaglia

LONDON (Reuters) - Calisen Group, which supplies smart meters to British households, is aiming to sell up to 4.08 billion pounds ($536.28 million) of shares in its planned initial public offering, banks working on the deal said on Tuesday.

Owned by private equity firm KKR <KKR.N>, Calisen said it intends to float around 25% of the company on the London stock market at a price range of 225 to 265 pence per share. That would imply a market value ranging from 1.25 billion to a maximum of 1.42 billion pounds ($1.87 billion) if it exercises a "greenshoe" option to sell an additional 3.75% of the company.

The deal comes against a difficult backdrop for UK listings which last year dropped to their lowest level since 2009 on Brexit fears and political turmoil ahead of a December general election.

It will test investor appetite for large share sales as the offer will comprise of new and existing shares owned by KKR and other manager investors.

The final offer price will be determined following a book-building process, with shares expected to start trading in February.

Calisen consists of two businesses -- Calvin Capital, through which it owns and manages a portfolio of domestic electricity and gas meters, and Lowri Beck, under which it carries out installation, meter reading and maintenance services on behalf of energy retailers.

It plans to use funds from the listing to support growth, repay debt and fund existing and new contracts relating to smart meter roll-out in Britain.

KKR, which bought the company in 2016 from Infracapital, has hired Credit Suisse, KKR Capital Markets, Citigroup and HSBC Bank, Barclays Bank and Goldman Sachs as joint bookrunners for the deal.



(Reporting by Rachel Armstrong and Pamela Barbaglia, editing by Louise Heavens and Kirsten Donovan)