Vaping firm Supreme valued at £156m in IPO

Manchester-based vaping and battery supplier Supreme has announced plans to float on the stock market next week in a listing which values the firm at around £156 million.

Supreme, which primarily supplies consumer goods to discount retailers, said it plans to raise around £67.5 million from investors through the listing on the London Stock Exchange’s junior AIM index.

“Supreme, a leading manufacturer, supplier and brand owner of fast moving consumer products, announces the successful pricing of its initial public offering and conditional placing of 5,597,015 new and 44,776,120 existing shares of 10 pence each at 134 pence per share with institutional investors, to raise gross proceeds of GBP67.5 million,” said the firm.

“It is expected that dealings in the shares will commence at 8.00 a.m. on 1 February 2021 on AIM under the ticker SUP and the ISIN number GB00BDT89C08.

“Immediately following admission, the company’s market capitalisation, based on the placing price, is expected to be approximately GBP156.1 million with a free float of approximately 43.2%.

“The placing saw strong demand from institutional investors.

“GBP7.5 million of the gross proceeds raised will be used to partially repay the group’s existing debt, as well as GBP60 million to pay the selling shareholders, including Sandy Chadha, the company’s founder and chief executive officer, who will retain a substantial shareholding in the group, amounting to approximately 56.8% of the shares in issue on admission.”

Supreme said it delivered £92.3 million in revenues for the year to March 2020, with earnings of £16.2 million.

Supreme had intended to float in 2018 before postponing the listing in the face of market uncertainty.

CEO 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.

“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.”

Supreme’s customers include discount retailers B&M, Home Bargains, Poundland, The Range, and Sports Direct; Wholesalers, e-tailers and Symbol Group Retailers such as Londis, SPAR and Costcutter; Supermarkets and high street retailers such as Asda, Halfords and Iceland; International retailers; Public Sector customers such as HM Prison & Probation Service; and direct to consumer online.

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Mark McSherry
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