Edwards decides on market flotation

Edwards had hired banks to explore a sale or flotation in September. Its owners CCMP Capital and Unitas Capital, both former buyout arms of JP Morgan, value the business at about 1.5bn, sources said.

Since then, it has run an auction that has drawn interest from major private equity firms including US heavyweights Advent International, Bain Capital and The Carlyle Group, people familiar with the matter said, although the cyclicality of the business was a concern.

Gardner Denver, the US-based maker of air compressors and pumps, also considered acquiring Edwards, it was said.

Edwards technology, including pumps that can create vacuums as empty as space, is used by all of the world's 10 biggest chipmakers, including Advanced Micro Devices and Hynix Semiconductor.

In November it said third-quarter net sales rose 75 percent to $257m, powering a 552 per cent leap in earnings before interest, tax, depreciation and amortisation (EBITDA) to $74m. Semiconductor revenue more than doubled.

Potential equity market investors could benchmark it against listed German rival Pfeiffer Vacuum Technology. Pfeiffer trades at about 8.6 times forecast EBITDA, according to Starmine data.

Edwards did not say where it planned to list.

London has had a difficult year for technology-related flotations: it has hosted initial public offerings (IPOs) this year from Betfair, Ocado and Promethean World, but all are trading below their debut prices.

Commenting on the decision Matthew Taylor, Edwards chief executive, said: "In what is shaping up to be an excellent year for us, I am delighted with the results of our strategic review and the prospect of Edwards remaining independent and becoming a listed company."