Loungers PLC floats on London Stock Exchange

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Cosy Club

Loungers PLC floated on the London Stock Exchange this week after raising £83m ahead of its initial public offer (IPO).

Loungers began trading on Monday at 200 pence per share, giving the company a market capitalisation of £185m at listing price. This falls short of the £250m some analysts predicted.

Shares in the restaurant chain rose 7.8% to 216 pence per share on Monday before settling back to 211 pence per share on Tuesday.

Loungers owns 146 bars under the Lounge and Cosy Club brands. It announced its listing plans in April and received £42.5m funding from Santander.

Shareholder Lion Capital still holds a 39% stake and founders Alex Reilley and Jake Bishop and other senior managers together continue to hold 16% of the firm.

Last financial year, Loungers PLC reported adjusted EBITDA of £16.6m with revenue of £121.1m.

Following a successful flotation, Loungers plans to expand and open numerous new restaurants across England and Wales. The company has stated an aim to open 25 bars or restaurants per year for the ‘medium-term’.

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