A statement from Loungers has revealed that its initial public offering by way of a placing of 41,625,000 ordinary shares at 200p per share has conditionally raised gross proceeds of approximately £83.3m.
As reported by The Morning Advertiser on 1 April, the operator of 146 café-bar sites across England and Wales revealed plans to float on the London Stock Exchange’s market for smaller, growing companies.
The placing values the company at £185m – or £212.5m including debt – slightly below pre-listing estimates of at least £250m.
Selling shareholders, including Lion Capital, company founders Alex Reilley and Jake Bishop and members of the senior management team, will pocket £21.7m of that sum, with the remainder going to the company.
According to Loungers’ statement, the proceeds will be used to repay company debt and provide a capital structure conducive to Loungers’ growth plans.
As reported by The Morning Advertiser, Loungers’ chairman and co-founder Alex Reilley previously outlined plans to expand Loungers’ estate to around 500 sites – breaking down as 100 Cosy Club venues and 400 Lounges.
Shares in the café-bar group are expected to start trading on AIM on Monday 29 April.
Going from strength to strength
Loungers chief executive officer Nick Collins explained: “Today is a significant milestone in Loungers’ journey because 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 that have enabled Loungers to go from strength to strength.
“We welcome all of our new shareholders to the Loungers family and look forward to the company’s continued growth and future success.”