2nd Aug 2016 07:57
LONDON (Alliance News) - Franchise Brands PLC on Tuesday said it raised GBP3.5 million in its initial public offering ahead of its listing on AIM.
The "multi-brand franchisor" placed 10.6 million shares at 33 pence each, giving the company a market capitalisation on admission of GBP15.6 million. The GBP3.5 million raising is at the upper end of its GBP3.0 million to GBP3.5 million target.
Directors subscribed for 2 million shares, equating to GBP650,000, following which founders Stephen Hemsley and Nigel Wray will hold 29% and 30% of the company's issued share capital, respectively. Hemsley is also executive chairman of the company and Wray is a non-executive director.
The proceeds from the placing will be used to expand the business, in particular for acquisitions, and Franchise Brands expects to commence dealings on AIM on Friday.
The group has a combined network of over 350 franchisees in 12 countries, but predominately operates in the UK. Its current brands are mobile car paintwork repair brand ChipsAway, mobile domestic oven cleaning brand Ovenclean, and premium residential house cleaning brand MyHome.
Its strategy is to focus on development of the franchise businesses that provide services to individuals and small-to-medium-sized enterprises.
"Today marks a significant milestone in the development of Franchise Brands. Despite challenging market conditions, we are delighted to have received this level of support from investors. Our admission to AIM will provide us with a strong platform from which to build on our success to date, and expand the group through the acquisition of complementary businesses," Hemsley said in a statement.
"We welcome our new shareholders and look forward with confidence to the next phase of our development as a publicly quoted company," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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