Cashbox, an independent ATM operator set up by former Hanco executives, is planning to raise around £3.5m by floating its shares on the Alternative Investment Market (AIM) of the London Stock Exchange (LSE).
In a statement, Cashbox says it will use the funds raised in the placing to extend its fee-charging ATM network. Although it hasn't disclosed exactly how much it expects to raise, according to a report by The Independent newspaper the group is looking to raise around £3.5m from private equity investors.
Cashbox was set up in September 2003 by Carl Thomas - a former sales director at ATM firm Hanco which was acquired by Royal Bank of Scotland in 2004 - and his brother Matt.
The company owns and operates an estate of 845 fee-charging ATMs in the UK. The units are located in pubs, off-licences and shops. The group currently has deals with off-licence chain Threshers and pub groups Bellhaven and Greene King.
The vendor says it already has plans to add a further 583 ATMs to its network and says there is potential to install a further 5510 units.
Although the group owns the ATMs it operates, Cashbox says most of its units are replenished by the merchant which eliminates any third-party handling costs.
Carl Thomas, chief executive, Cashbox, says: "Our business model is highly cash generative and our lease hire of the ATMs ensures that the depreciation is taken off the balance sheet and further reduces the level of transactions to make a machine profitable. There continues to be a significant demand for convenient cash, as well as for ATMs which drive turnover for a site."
Thomas says the group expects to have around 1900 ATMs installed by the end of 2006.
Trading on AIM is expected to commence in March.
Earlier this month the UK government agreed to meet with banking chiefs and independent ATM operators to discuss concerns over the rising number of fee-charging cash machines across the country.
Five years ago virtually all ATMs in the UK were free, but now around 23,000 of the UK's 56,000 ATMs charge customers for withdrawing cash. According to forecasts by the Nationwide, UK bank customers will pay £250m to withdraw their own money from fee-charging cash machines in 2006.