29th Apr 2019 12:37
LONDON (Alliance News) - Shares in bar chain Loungers PLC rose 7.8% on Monday after they began trading on the AIM market of the London Stock Exchange following a GBP83 million initial public offer.
Loungers - which owns 146 bars under the Lounge and Cosy Club brands - began trading at the London market open on Monday.
This followed the company announcing its listing plans in April and it outlining last Wednesday that it had raised GBP83.3 million through its initial public offering. The IPO was priced at 200 pence per share, giving Loungers a market capitalisation of GBP185 million at the listing price.
Shares in Loungers were trading above the IPO price on Monday, at 215.50 pence at around midday.
Following admission, shareholder Lion Capital still holds a 39% stake and founders Alex Reilley and Jake Bishop and other senior managers together continue to hold 16% of the firm.
The funds raised through the new capital raise - around GBP61.6 million - will be used to reduce leverage. The remainder of the IPO proceeds will go to existing shareholders.
For the 2018 financial year - ended April 28, 2018 - Loungers reported adjusted earnings before interest, taxes, depreciation and amortisation of GBP16.6 million on revenue of GBP121.1 million.
Looking forward, Loungers is planning to continue to open around 25 new bars each year over the "medium" term. An independent analysis has presented over 400 potential locations for Lounge bars and 100 for Cosy Clubs in England and Wales.
The firm believes this may be a "conservative" number of potential sites.
Related Shares:
Loungers Plc