Loungers looks set to raise £83.3m on its admission to the Alternative Investment Market (AIM) on Monday, after the company was valued at £185m.
The all-day café, bar and restaurant group which has 146 venues across England and Wales, will place 41.6 million ordinary shares at £2 per share.
Its admission document shows that from the £83.3m raised, £61.6m will be earmarked to reduce the company’s debt and fund its ambitious growth plans.
The remaining £21.7m will go to selling shareholders: investor Lion Capital, founders Alex Reilley and Jake Bishop (founder chairman and commercial director respectively), as well as members of the senior management team.
On admission Lion would look to take 39% of the issued ordinary shares, with the executive directors, founders and senior management interested in 16%. The remaining 45% would be available as a free float.
The company’s admission to AIM is expected to take effect at 8am on Monday (29 April).
Nick Collins, chief executive of Loungers, said: “Today is a significant milestone in Loungers’ journey as it has long been our ambition to list the company on the public markets. We are delighted that our unique business has resonated strongly with investors.
“None of this would have been possible without the continued commitment of our wonderful team of employees. I would like to take this opportunity to thank them on behalf of the board for their tremendous efforts, which have enabled Loungers to go from strength to strength.
“We welcome all of our new shareholders to the Loungers’ family and look forward to the company’s continued growth and future success.”
Financial statements showed revenue of £65.4m in the year to 7 October 2018, with operating profits of £4.5m.
Loungers has said it will target 25 new sites this year.