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(Alliance News) - Online retailer Virgin Wines UK PLC started trading on AIM in London on Tuesday, rising 17% from its IPO price.
The Norwich-based company offers pay-as-you-go services but also provides customers with the WineBank and Wine Plan subscriptions programmes.
In its initial public offering, Virgin Wines placed shares at 197 pence each, giving it a market capitalisation at the IPO price of GBP110 million. The stock was quoted at 229.95p on Tuesday afternoon, up 17% from that price for a GBP128 million market cap.
Virgin Wines placed 17.7 million existing shares to raise GBP34.9 million for selling shareholders and 6.6 million new shares to raise GBP13.0 million for the company. The company now has 55.8 million shares in issue.
Liberum Capital Ltd acted as nominated adviser and sole broker in relation to the IPO.
In the financial year that ended June 30, 2020, Virgin Wines generated revenue of GBP56.6 million and adjusted earnings before interest, tax, depreciation and amortisation of GBP4.8 million. More recently, adjusted Ebitda in the six months ended December 31 more than doubled to GBP4.5 million, on revenue which climbed 55% to GBP40.6 million.
"We have enjoyed strong, consistent growth leading to the group delivering more than one million cases of wine to our customers during 2020," Chief Executive Officer Jay Wright said on Tuesday. "We have a clear strategy to continue this growth over the coming years which is underpinned by the strength of our customer proposition as well as the benefit of many positive consumer trends."
Shareholders Income & Growth VCT PLC, Mobeus Income & Growth VCT PLC, Mobeus Income & Growth 2 VCT PLC, and Mobeus Income & Growth 4 VCT PLC all noted the Virgin Wines admission to AIM.
Income & Growth VCT said it holds 6.6 million shares in Virgin Wines with a value of GBP13.0 million at the IPO price, doubled from the GBP6.4 million valuation included in the venture capital trust's December 31 valuation. Net asset value per share of 79.17 pence on that date will rise by 5.58p on the basis of the Virgin Wines uplift.
Income & Growth VCT also will receive payment of its GBP2.1 million in remaining loan stock, as Virgin Wines uses IPO proceeds to repay debt.
Mobeus Income & Growth VCT said it holds 5.8 million Virgin Wines shares, worth GBP11.5 million at the IPO price, up from its December 31 valuation of GBP5.7 million.
Mobeus Income & Growth VCT reported its December 31 NAV on Tuesday as 67.03p, up from 65.59p at the start of the fourth quarter of 2020. It said the Virgin Wines uplift will add 4.64p to that.
It received payment of GBP2.4 million in loan stock from Virgin Wines.
Mobeus Income & Growth 2 reported NAV on December 31 of 87.22p per share, up from 79.25p on September 30. Its holding in Virgin Wines is 3.1 million shares, giving a value of GBP6.1 million at the IPO price, up from GBP3.0 million on December 31. This will add 4.21p to NAV.
Mobeus Income & Growth 4 reported NAV on December 31 of 81.50p per share, up from 72.30p on September 30. Its holding in Virgin Wines is 4.6 million shares, giving a value of GBP9.1 million at the IPO price, up from GBP4.5 million on December 31. This will add 5.53p to NAV.
Mobeus Income & Growth 2 will receive payment of GBP1.3 million in loan stock and Mobeus Income & Growth 4 will get GBP1.1 million in loan stock paid.
Together, the four VCTs advised by Mobeus Equity Partners LLP will own 36% of Virgin Wines, whose senior management own just over 20%.
By Tom Waite; thomaslwaite@alliancenews.com
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