Footasylum valued at £171m in IPO
Footasylum will finally list on the London Stock Exchange next week and today we found out how much it’s been valued at. And the answer is? £171.3 million.
Listing on the Alternative Investment Market (AIM), its shares will trade under the ticker FOOT from next Thursday with the company’s current owners selling enough shares to raise gross proceeds of around £64.5 million.
The shares are being sold at £1.64 each, although just how they will fare on their stock market debut is open to question with a number of recent IPOs seeing shares dropping below their float prices.
But it’s future, long-term growth that investors will be interested in rather than short-term share price fluctuations. And if Footasylum can continue its strong sales and earnings figures of recent years - as well as paying investors a regular dividend - its shares will most likely be in demand.
And it has every chance of continuing its impressive run. One reason for the IPO is to raise the capital needed to add to the chain’s existing 61 stores and reach its stated goal of 150 stores.
CEO Clare Nesbitt, daughter of founder David Makin, said Friday: “Today marks the beginning of an exciting new chapter in the Footasylum story. We are delighted that our product-led, multi-channel expansion strategy has resonated so strongly with investors, and are thrilled to have received such a strong level of demand for the placing. We welcome our new shareholders and look forward to delivering the significant potential that we see for Footasylum as a quoted business.”
But it’s clear that the family will retain control of the strategic direction the business will take. The Makin family is retaining a 63% stake so is firmly in the driving seat of the firm that saw sales rising to £147 million last year from £110.4 million.
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