Fat Face aims to raise £110 million through IPO

Fashion retailer Fat Face has announced its decision to launch an initial public offering (IPO) on the London Stock Exchange later this month that could value it at up to £440 million.

The retailer said it had plans to raise £110 million through the float, which would give some of its existing shareholders like Bridgepoint and senior management members an opportunity to realise part of their investments. Bridgepoint owns nearly 77 per cent of the fashion business.

A spokesperson for Fat Face said that following the completion of the IPO, there would likely be a free float of at least 25 per cent of the issued share capital of the company. The proceeds from the flaot will also the company to hack its debt from £111.5 million to around £60 million.

Fat Face Chairman Sir Stuart Rose said, "Fat Face has gone from strength to strength in recent years under the leadership of Anthony and his senior management team. The listing of Fat Face on the London Stock Exchange marks an exciting stage in the Company's continued growth and development."

Private equity-backed Fat Face was founded in 1988, when ski professionals Jules Leaver and Tim Slade started selling T-shirts from a VW Campervan in the French Alps to generate funds for their winter sports lifestyle. First Fat Face store was opened in 1992. Bridgepoint took control of the business fifteen years later for £360 million.

This year, the company reported an increase of 12.4 per cent in sales for the 35-week period through February. Adjusted earnings jumped 28.2 per cent to £32.1 million.

Fat Face currently operates more than 200 retail stores in various shopping malls, towns, travel hubs and city centre across the UK; and it has plans to open 8 to 10 new stores per year in the future.