- Prachi Singh |
As speculated earlier, Footasylum, a UK-based fashion retailer has announced its intention to float an IPO on the London Stock Exchange. The company said that dealings in the company's ordinary shares on AIM are expected to commence in November 2017. Meanwhile, Barry Bown will be joining the company’s board as Executive Chairman on or around June 1, 2018, when John Wardle will retire from the position.
Commenting on the development, Clare Nesbitt, Chief Executive Officer of Footasylum, said in a statement: "We are thrilled to be announcing our intention to list on AIM. This is a logical next step in Footasylum’s upward trajectory as we seek to build on our exciting product-led, multi-channel expansion strategy. We see substantial opportunities ahead across our retail, online and wholesales channels, and believe that we have the people, products and strategy to realise them.”
Highlights of Footasylum’s IPO
The company owned by JD Sports founders, John Wardle and David Makin operates a multi-channel model which combines a 60 stores and an ecommerce platform and the recently launched wholesale arm for distributing its own brand ranges via a network of partners. In FY17, the store estate accounted for 71 percent of revenue and ecommerce accounted for 29 percent. The directors see the potential to grow the store estate in the UK to at least 150 and are targeting 8 to 10 net new store openings per annum in the medium term. In addition, significant investments will be made over the next three years in increasing the company’s digital presence as part of a broader upgrade of its IT systems to support growth.
Footasylum added that the company’s directors have developed a clear growth strategy with the objectives of increasing the company’s share of its chosen markets; continuing to build brand authority amongst the company’s target audience; enhancing reputation as a core distribution channel for its brand partners and continuously strengthening its brand relationships; and delivering long term sustainable value creation.
The net proceeds from the placing, receivable by the company will be utilised, along with existing cash resources and debt facilities, to facilitate this growth investment.
Barry Brown to join as Executive Chairman in 2018
The company’s directors believe that Brown’s over 30 years experience of building a retail business in the public domain and his high level relationships with many major brands will enable him to make a valuable contribution to the company’s leadership team.
Most of the 30 years of Brown’s service has been at JD Sports, which he joined in 1984 and where he served as CEO from 2000 to 2014.
GCA Altium Ltd is acting as nominated advisor and Liberum Capital Limited is acting as broker in relation to admission.