PwC acted as lead adviser in respect of the accounting and tax structuring support in respect of the transaction.
Victorian Plumbing, the online bathroom retailer, announced plans to float at the beginning of June and is now set to become the largest flotation on the Alternative Investment Market (AIM).
Based in Skelmersdale, Lancashire, the group employs more than 500 staff across seven locations in Skelmersdale, Manchester and Birmingham. Victorian Plumbing held an estimated 14.2% of the bathroom market by revenue in 2020. Revenues hit £208.7m and £26.2m adjusted EBITDA in the financial year ended September 30, 2020. With growth trajectory being maintained in the current financial year, delivering results of £140.7m revenue, and £20.1m adjusted EBITDA for the six months to the end of March 31, 2021.
The announcement will see Victorian Plumbing the conditional placing of 4,427,481 new ordinary shares and 109,122,138 existing ordinary shares, at a price of 262p per share with institutional and other investors, giving the company a market capitalisation on admission to AIM of £850m.
The PwC team supporting Victorian Plumbing was led by Dan Harris, who advised on the employee incentive aspect, Dan McNulty (Accounting) and Simon Viner (Tax).
On admission, the company will have 324,427,481 ordinary shares in issue and a free float of approximately 35%. The placing of the new shares is expected to raise gross proceeds of £11.6m for the company, while the placing of the sale shares is expected to raise aggregate gross proceeds of £285.9m for the selling shareholders.
The placing has attracted strong support from high quality institutional investors and was significantly over-subscribed. The business has confirmed that the primary proceeds of the placing will predominantly be used to satisfy the direct costs of the IPO process. The company also intends for the placing to position Victorian Plumbing strongly for the next stage of its development.
Dan Harris, PwC Partner commented;
“PwC was delighted to have been able to play a key role in helping to facilitate what will be a significant floatation on the Alternative Investment Market (AIM). I’d like to take this opportunity to wish everyone at Victorian Plumbing every success for the future and I’m sure that this placing will provide the perfect foundation for their growth plans moving forwards.”
Paul Meehan, Victorian Plumbing CFO added;
“The overwhelmingly positive reaction to our IPO has been humbling and it is amazing to see the support and excitement around our strategic plans. I’d like to thank PwC for their support and advice in helping us navigate through some of the complexities associated with such a significant floatation.
“It is a great pleasure to welcome our new shareholders to the business, and we are excited for the next chapter of growth together as a public company.”
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