Bar Chain Loungers Targets GBP83 Million Raise Through AIM Listing (ALLIPO)

LONDON (Alliance News) - Bar chain Loungers PLC said Tuesday it plans to raise GBP83 million ...

Alliance News 24 April, 2019 | 9:35AM
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LONDON (Alliance News) - Bar chain Loungers PLC said Tuesday it plans to raise GBP83 million through its initial public offer on the AIM market of the London Stock Exchange, valuing the firm at GBP185 million.

Loungers - which owns 146 bars under the Lounge and Cosy Club brands and first announced listing plans at the start of April - will issue 41.6 million shares through a conditional placing at 200 pence per share. Based on the placing price, the firm will have a market capitalisation of GBP185.0 million.

Of the IPO offer, 30.8 million shares, or GBP61.6 million, will be raised as new capital with funds going into the business to reduce leverage. A further 10.8 million shares will be placed by existing shareholders for a further GBP21.7 million.

Following admission - expected on April 29 - current shareholder Lion Capital will still hold a 39% stake and founders Alex Reilley and Jake Bishop and other senior managers will continue to hold 16% of the firm.

For the financial 2018 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.

"Today is a significant milestone in Loungers' journey as it has long been our ambition to list the company on the public markets," Chief Executive Nick Collins said. "We are delighted our unique business has resonated strongly with investors."

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.

By Ahren Lester; ahrenlester@alliancenews.com

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