The listing will value the City Pub Group, whose pubs such as The Phene often feature in hit TV show Made in Chelsea, at a whopping £96m.
International law firm Addleshaw Goddard has advised The City Pub Group plc on its initial public offering (IPO) and admission to AIM – a market operated by the London Stock Exchange.
The City Pub Group plc announced today (20 Nov), its proposed admission to trading on AIM and conditional placing to raise £46.6m for the company and selling shareholders, valuing the group at £96m on the basis of the placing price.
Addleshaw Goddard's Scottish based corporate team led the IPO process and also advised the company on a pre-IPO merger, by way of scheme of arrangement, to acquire and create the current group.
Since its inception in 2011, The City Pub Group has successfully built up a portfolio of 34 premium pubs across Southern England. The funds raised by the IPO will support the group's expansion plans, with the target of doubling the size of its current portfolio over the next three to four years.
The group is chaired by co-founder Clive Watson, who previously founded Tup Inns and the Capital Pub Company, the latter of which he and fellow founders David Bruce and John Roberts sold to Greene King in 2011 for an enterprise value of £93m.
Watson said: “We have built the group's largely freehold portfolio in key towns and cities in Southern England. The pubs are unbranded and focus on their local market.
“The strong response to our IPO proposal, with the placing being significantly oversubscribed, supports our strategy and will enable the group to capitalise on the significant opportunities to expand the pub portfolio, including into new locations, and to build long term value for shareholders.”
Anna Brown of Addleshaw Goddard added: “The strong response from investors to this IPO clearly demonstrates that, for companies with a strong management team and clear strategy, opting for an IPO can unlock significant fundraising potential to support growth, whether this is by way of acquisition, like The City Pub Group, or organic growth and development.”
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