Pawnbrokers set to raise £15m with IPO
Pawnbrokers Ramsdens Financial are set to float on the London Stock Exchange.
The company, based in Middlesbrough with operations across the North of England, Wales and Scotland, has announced its intention to list on the AIM market by mid-February.
It said it expects to raise £15.6m with the issue of shares at 86p apiece. Its market capitalisation upon admission will be £26.5m.
It will join fellow pawnbroker and loan provider H&T Group PLC on the AIM market on 15 February.
In its latest filed accounts for the year to March 2016, Ramsdens turned over £30.0m with pre-tax profits of £3.4m. It was backed by the Leeds team of private equity firm NorthEdge Capital in 2014, and the IPO marks a partial exit for the firm.
Andy Ball, founding partner at NorthEdge Capital, said: “Ramsdens has enjoyed sustained growth during the two year and a half years we have been working with the business. The drive and passion of the management team to develop the business has been exemplary. A prospective IPO is an opportunity for the team to further build on a robust platform for growth.”
Peter Kenyon, CEO of Ramsdens, said: “We are delighted by the level of interest and support we have received from high quality institutional investors.
“We are a very well invested company with an attractive and progressive dividend policy and we look forward to creating value for all of our shareholders in this new and exciting stage in Ramsdens’ development.”
The existing management team including CEO Peter Kenyon and CFO Martin Clyburn will continue to lead the business. Andrew Meehan, who was introduced to Ramsdens by NorthEdge, will continue in his role as non executive chairman.
In addition, Simon Herrick and Steve Smith have joined the board as non executive directors.
The first Ramsdens branch opened in 1987 in Stockton-on-Tees and it now employs just under 530 staff at 127 stores.
It offers foreign currency exchange, pawnbroking loads, as well as buying and selling new and secondhand jewellery.
In an early spate of admissions to the LSE, it is joined by Arix Bioscience which announced plans to float today.
Addleshaw Goddard’s Manchester corporate team advised Liberum in its role as nominated adviser, broker and bookrunner to the IPO of Ramsdens Holdings plc on AIM.
The Addleshaw Goddard team was led by partner Richard Lee and included managing associate Jamie Partridge and associate David Auty.
Grant Thornton, led by Dan Rosinke and Mark Overfield, acted as reporting accountant on the transaction.
