9th Jun 2016 12:35
LONDON (Alliance News) - Media company Time Out Group PLC on Thursday said it will join the London Stock Exchange's AIM with a value of GBP195 million by market capitalisation, after GBP90 million was raised from investors in its initial public offering.
Time Out expects to receive GBP58 million from the IPO, after taking into account the repayment of shareholder debt and costs of raising the new funds. In 2015, the company's operating loss widened to GBP18.5 million from GBP8.4 million a year earlier, mainly due to significant investment in growth, even as revenue rose to GBP28.5 million from GBP26.9 million.
Time Out does not expect to pay dividends in the "foreseeable" future, as it intends to retain earnings to back growth and development.
The money raised will be used to back the company's growth plans, as well as to invest in its digital, e-commerce and markets businesses. Time Out, which makes its money by selling advertising and through e-commerce commissions generated by online bookings and transactions, was founded in 1968 by Tony Elliott, now a non-executive director, as a culture and entertainment London magazine.
Oakley Capital Investments Ltd, the AIM-listed company that provides investors with access to Oakley Capital Private Equity investments, welcomed completion of Time Out's IPO. Oakley Capital Private Equity LP, which invested in November 2010 in a move to back digital development from the traditional print brand associated with the company, said Time Out now has its largest audience in its history, with an audience reach of about 111 million per month across all platforms.
"Since its inception 48 years ago, Time Out has been discovering the 'brilliant' and searching out the 'extraordinary' of city life. As we look forward to the next phase of our development, we will continue to put cities in the palm of consumers' hands, providing them with curated content across our platform and inspiring them to discover, book and share the best that the world's most exciting cities have to offer," Time Out Chief Executive Officer Julio Bruno said in a statement.
In the wake of the IPO, Oakley Capital Investments said it has transferred its co-investments in Time Out Markets and Flypay to Time Out, with Oakley Capital Investments' shares in Time Out now converted into ordinary shares.
The result is that Oakley Capital Investments' direct exposure to Time Out is held entirely in the form of an equity stake. At the IPO price, Oakley Capital Investments' stake will be valued at GBP47.2 million and will represent 24.2% of Time Out.
In addition, Oakley Capital Private Equity LP, in which Oakley Capital Investments is a limited partner with a 65.5% interest, will at IPO hold an interest in Time Out valued at GBP68.0 million, representing 34.9% of Time Out's issued share capital.
"This investment is another example of Oakley leveraging its entrepreneurial, digital and operational experience and expertise to fund and support a complex strategic transformation. Time Out's successful listing is a clear endorsement of the company's transformation over the past five years and its prospectus for value generation in the future. We are a committed shareholder in the business and we look forward to the company going from strength to strength under the experienced management led by group CEO, Julio Bruno," Peter Dubens, a director of Oakley Capital Investments and non-executive chairman of Time Out, said in a statement.
Dealings in the shares are expected to begin at 0800 BST on Tuesday, June 14.
Liberum Capital Ltd is acting as nominated adviser and sole bookrunner to Time Out.
By Samuel Agini; [email protected]; @samuelagini
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