Government gives green light to QinetiQ flotation

Defence technology and security firm to list on LSE

Defence technology and security firm QinetiQ has received government approval to float on the London Stock Exchange.

Defence secretary John Reid last week confirmed that the government is to sell its majority stake in the company, which could raise as much as £1bn.

‘The government believes that an initial public offering (IPO) provides the best route for QinetiQ to develop its excellence as a supplier of battle-winning technology to our armed forces while also creating new opportunities to exploit British technology in a global market,’ said Reid.

QinetiQ provides IT security and hosting services to organisations including Royal Mail and MI5, and battlefield technology for the Ministry of Defence (MoD).

‘Its runway hazard detection system, Tarsier, developed from advanced radar research in the wake of the Concorde tragedy, has been trialled at some of the world’s busiest airports and will shortly be protecting air travellers at Vancouver International Airport,’ said Reid.

But the planned IPO has been criticised by MPs who argue the MoD is allowing private investors to make massive profits.

Venture capitalist Carlyle Group, for example, which has a 32 per cent share in QinetiQ, could make £340m from its initial investment of £42m.

But Richard Holway, director at IT analyst Ovum, criticised the negative response to the IPO.

‘I think the media should be full of joyous stories of a great British technology success,’ he said.