Vaping wholesaler Supreme targets £156m market cap with AIM listing
Vaping wholesaler Supreme this morning announced plans to float on London’s stock market, targeting a £156.1m market capitalisation.
The Manchester-based e-cigarette firm will launch its initial public offering on London Stock Exchange’s growth market AIM next week.
Its market capitalisation is expected to reach £156.1m following the IPO.
This morning the company said it had raised £67.5m through a conditional share placing with institutional investors.
In total, £7.5m of the gross proceeds will be used to pay down debt, while £60m will be handed to selling shareholders including founder and chief executive Sandy Chadha.
Chadha will retain a 56.8 per cent stake in the company, which is also a battery and lighting wholesaler.
Supreme said today that the IPO will allow the firm to drive its growth strategy forward, raise its profile and “incentivise key employees”.
“We have created a profitable business of significant scale, underpinned by a platform which provides a seamless route to market for a number of leading brands and product categories,” Chadha 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.”