Franchise group unveils market value ahead of Friday’s float
FRANCHISE BRANDS will have a market value of £15.55m when it floats this Friday, as it becomes the first West Midlands company to go public after the EU referendum.
The company is headquartered in Kidderminster and operates three brands – ChipsAway, Ovenclean and MyHome – through 330 franchisees. It predominantly operates in the UK but has franchisees in 12 countries.
Franchise Brands’ two major shareholders are its co-founders, Saracaens chairman Nigel Wray who holds 38.6% and the company’s executive chairman Stephen Hemsley, who has 35.6%. The duo, who worked together growing pizza franchise business Domino’s UK, will reduce their combined stake from 74.2% to 57.5%.
The oversubscribed placing has raised £3.5m, which will result in £2.86m being available to grow the business, predominantly through acquisitions.
Mr Hemsley said: “Today marks a significant milestone in the development of Franchise Brands. Despite challenging market conditions, we are delighted to have received this level of support from investors.
“Our admission to AIM will provide us with a strong platform from which to build on our success to date, and expand the group through the acquisition of complementary businesses.
“We welcome our new shareholders and look forward with confidence to the next phase of our development as a publicly quoted company.”
Franchise Brands will start trading on the Alternative Investment Market this Friday, with its shares priced at 33p. It is expected to be followed
Manufacturer Autins Group has also announced its intention to float, and will confirm its first day of trading shortly.
