* Cox & Kings plans flotation on Bombay stock exchange
* Says plans to raise about $100m through IPO
By Phakamisa Ndzamela and Matt Scuffham
PEWSEY, WILTSHIRE - Venerable 250-year-old British travel firm Cox & Kings is planning an IPO on the Bombay Stock Exchange in September, reflecting its desire to expand in the burgeoning Indian holiday market.
Chairman Anthony Good told Reuters on Friday the company will issue shares equivalent to about 25 percent of the business, and expects to raise about $100 million, giving it a market valuation of about $400 million.
The upmarket holiday firm has had a presence in India since 1758, when it was founded by Richard Cox as a bank for army officers serving in the country.
The decision to float on the Bombay Stock Exchange was made after its Indian subsidiary outgrew its other businesses, Cox & Kings said.
"India is so far on the way forward that it's the Indian company that has ended up as the parent," said Good, who has been chairman of Cox & Kings since 1975.
Good said the proceeds will be used to make acquisitions and to pay down the company's debt, which stands at more than $11 million.
Cox & Kings' Indian operations achieved revenues of around 740 million rupees ($26.18 million) in 2008. The firm provided holidays for about 287,000 Indians in 2008, compared to 16,500 holidaymakers from Britain.
Good said he expects the number of Indians holidaying with Cox & Kings to rise to 500,000 annually by 2010.
"It's a reflection of the growth in the affluent middle classes, mainly based in the major Indian cities," Good said.
India's holiday market has also been identified by major operators such as TUI Travel Plc, Thomas Cook Plc, and Kuoni AG as a key growth area. ($1=28.27 Rupee) (Writing by Rosalba O'Brien; Editing by Rupert Winchester)