8th Oct 2021 10:10
(Alliance News) - Shares in Tortilla Mexican Grill PLC rose on Friday as the Mexican-themed restaurant chain began trading on the AIM market of the London Stock Exchange.
The London-based firm priced its initial public offering at 181 pence per share, giving a market capitalisation of GBP70.0 million. Shares had risen 5.0% to 190p in mid-morning trading, growing the company's market cap to around GBP73.5 million.
Tortilla Mexican Grill raised GBP5.0 million for the company and GBP23.0 million for selling shareholders in the float.
Proceeds from the float will be used to develop franchise opportunities and expand its cloud kitchen portfolio, the restaurant operator said. Tortilla Mexican Grill has 62 sites worldwide, 52 of which are in the UK while 10 are franchised in the Middle East.
The placing was "comfortably over-subscribed" by investors, Tortilla noted. Following the float, Luxembourg-based bank Quilvest will own around 20% of the company and the board will own about a 12% interest.
"Joining AIM marks a very exciting milestone in Tortilla's growth journey and we're thrilled to be welcoming our new shareholders to the Tortilla family," said Chief Executive Richard Morris.
"Underpinned by our fresh, high quality and great value food, as well as our multichannel order strategy, we are very excited to drive forward Tortilla's long-term growth strategy and achieve the Tortilla brand's significant potential across the UK and internationally."
Liberum Capital Ltd acted as adviser and sole broker for the IPO.
By Will Paige; [email protected]
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