US: Fat Face to cancel IPO amid market fears
Fat Face was expecting to raise up to GBP110m from the planned IPO
UK fashion retailer Fat Face has backtracked on previous plans for an initial public offering (IPO), blaming market conditions.
The company, which earlier this month announced plans to float, said despite a strong level of interaction with an interest from institutional investors, it has decided to discontinue the plans.
Fat Face was expecting to raise up to GBP110m (US$185.6m) by selling a portion of the ordinary shares owned by leading investor Bridgepoint, stock held by other shareholders and management, alongside a primary issue of new ordinary shares.
But the company said in a statement today (22 May): "Current equity market conditions are the principal factor in the decision."
"The board remains confident in the prospects for the business and will continue to execute the growth plans which are already underway."
Fat Face, which opened its first UK store in 1992, now operates 208 retail stores in the UK and Ireland, as well as a website and wholesale concession agreements with other retailers.
During the 35 weeks to 1 February, the company saw revenue increase 12.4% and like-for-like sales rise 8.4%, with adjusted EBITDA rising 28.2% to GBP32.1m.
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