Vaping and vitamins wholesaler Supreme announced on Wednesday that it plans to float on London’s AIM All-Share index next week.
The Manchester-based firm, which owns brands Klk and 88Vapes, said it is set to list on February 1 under the ticker SUP with an expected market value of £156.1 million.
The company, which also distributes batteries and lightbulbs to retailers including Poundland and ASDA and recently moved into selling health supplements, said it has raised £67.5 million through a flotation placing with institutional investors at 134p per share.
Of the cash raised, £7.5 million will be used to “partially repay the group's existing debt”, with £60 million going to selling shareholders including Supreme’s founder and chief executive Sandy Chadha.
The company said Chadha is to keep a “substantial” 56.8% of the company’s shares once it is listed.
The IPO comes after the firm - which also has an arm selling direct to consumers online - saw revenues of £92.3 million in the year to April 2020, with gross profits of £26.8 million.
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In a statement, bosses said they “believe that the IPO will enable the company to execute on its growth strategy, raise its profile and provide the ability to incentivise key employees”.
Chadha, whose father set up the company back in 1975, said he is “deeply proud of the business we have developed and believe our flotation on AIM will provide Supreme with the tools with which to capitalise on a number of exciting growth opportunities”.
He said: “We have established leading positions across the battery, lighting and vaping markets. Coupled with our proven ability to innovate, with recent category entries such as sports and nutrition and branded household consumer goods now contributing substantially to our financial performance, we have a clear path to maintaining sustainable growth.
“We welcome our new shareholders at what is a very exciting inflection point for our business.”
The IPO is being brokered by Berenberg, with Grant Thornton as nominated advisor.
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