Supreme PLC said it has agreed a £67.5mln fundraising as part of an initial public offer on London’s junior AIM market.
The Manchester-based company is an importer, manufacturer and brand owner of fast-moving consumer products, branching out from an initial specialisation in the distribution of batteries into light bulbs, vaping and sports nutrition.
Its selling point is “a vertically integrated platform providing an excellent route to market for well-known brands and products”, from direct to consumer online and via more than 3,300 active business accounts with retail customers including B&M, Poundland, The Range, Sports Direct, Asda, Halfords, Iceland, Londis and Costcutter, as well as public sector customers such as HM Prison & Probation Service.
Based on a placing price of 134p, Supreme expects to begin trading on AIM on February 1 with a £156.1mln market capitalisation and a free float of roughly 43.2%.
Of the funds raised, £7.5mln will be used to partially repay debt, with the other £60mln going to selling shareholders, including founder and chief executive Sandy Chadha as he sells down his stake to just under 57%.
After starting out selling batteries from the back of his dad’s van, Chadha grew the business with moves into light bulbs, and the group has exclusive licences with Energizer, Eveready and JCB, and in sports nutrition has an agreement with PureGym.
The group owns the UK vaping brand 88Vapes and has its own e-liquid manufacturing facilities, selling 45mln bottles and almost 800,000 vaping kits in the year ended to March 31, 2020.
Chadha said: “I am 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. 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.”