Public sector-focused IT business Civica arrived on AIM having raised £15m of new cash and a further £30m for existing investors, via a Seymour Pierce-advised placing at 175p. According to chief executive Simon Downing there were several motivating factors behind the float, most significantly the opportunities to provide existing backers with an exit route and to raise a pile of cash, which will be used to almost halve bank debt to £18m. Alchemy Partners, the investment business headed by Jon Moulton, was the big beneficiary of the £30m placing for existing shareholders, off-loading around £11m of its shares. Despite the sale, Alchemy retains a 38.8% stake in the business, which currently counts 45% of UK local authorities as customers, boasts a similar presence in Australia and managed to generate a £9.3m profit before tax from £90.3m of revenues in the year to September. At present Civica derives most of its revenue from software sales, its products being used to manage the issue and collection of parking fines and to provide mobile intelligence for police forces among other applications. However, Downing also has high hopes for the company's consulting and managed services arms and says Civica intends to be a consolidator in what is still a highly fragmented sector. With house broker Seymour Pierce expecting further improvements in sales and profitability this year, a float value of £79m may prove to be rather slight.