The City Pub Group looks to double estate as it announces stock market float

Clive Watson
21/11/2017 - 07:00
In a bid to raise £46 million to double the size of its estate, The City Pub Group, operator of 34 pubs across England, has announced it will begin trading on AIM, London’s junior stock market, later this week.

The company plans to place 20.6 million new and 6.8 million existing shares on the market at 170 pence per share, thus valuing the business at £96 million. 

From the AIM IPO (Initial Public Offering), it is expecting to raise £35 million- £5 million more than initially expected due to “strong institutional demand”.

The stock is expected to start trading on 23 November.

The money raised is expected to go towards expanding the company’s number of pubs, with chairman Clive Watson predicting the group's portfolio to grow twice in size over the next few years. 

He said: “We are thrilled with the strong response to our IPO which has led to the offer being significantly oversubscribed, and welcome all our new shareholders. The funds raised will help City Pub Group build on its solid growth platform and enable the Company to fund and capture the exciting opportunity ahead. 

“City Pub Group has a strong management team with a clear and proven strategy to double the size of its high quality estate in the next three to four years and build long-term value for all stakeholders.” 

Watson founded The City Pub Group along with David Bruce in 2011- the same year the two sold The Capital Pub Company, another pub company they had established, to Greene King for £93 million.

The City Pub Group operates eight pubs in London including Temple Brew House on The Strand and The Neill Gwynne in Covent Garden.

Its portfolio also includes pubs in Brighton, Bristol, Winchester, Norwich, Oxford and Cambridge.

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