Loungers has announced its initial public offering on the AIM by way of a conditional placing, putting the market capitalisation and enterprise value of the company on admission at £185m and £212m respectively.
The chain, which operates 146 restaurants, is placing 41.6m ordinary shares at 200p per share, raising gross proceeds of £83.3m, comprising £61.6m for the business and £21.7m for the selling shareholders.
The company’s net proceeds will be used, alongside new bank facilities, to repay the group’s current debt facilities, reduce the overall level of indebtedness and provide the group with an appropriate capital structure with which to pursue its growth plans.
Selling shareholders include its institutional backer Lion Capital, founders Alex Reilley and Jake Bishop and members of the senior management team.
On admission, Lion Capital will be interested in approximately 39% of the issued ordinary shares, with the executive directors, founders and senior management interested in 16%. That will leave a free float of 45%.
Commencement of dealings is expected to take place on 29 April 2019.
Nick Collins, CEO of Loungers, said: “Today is a significant milestone in Loungers’ journey as it has long been our ambition to list the company on the public markets. We are delighted that our unique business has resonated strongly with investors.
“None of this would have been possible without the continued commitment of our wonderful team of employees. I would like to take this opportunity to thank them on behalf of the board for their tremendous efforts which have enabled Loungers to go from strength to strength.”