Applied Nutrition has set the price range for the UK-based company’s upcoming IPO that will value the business at as much as £400m ($523.2m).
The maker of protein powders, bars and nutrition drinks, which is backed by UK retailer JD Sports, plans to offer around 137.4 million shares at a price range of 136 pence to 160 pence.
In a filing with the London Stock Exchange today (15 October), Applied Nutrition said the indicative pricing would give the company an estimated market capitalisation of £340-400m.
The shares will be sold by “certain existing shareholders”, according to the filing. JD Sports took a 32% interest in the business in 2021, while founder and CEO Thomas Ryder remains the majority shareholder.
Applied Nutrition added: “The company is very pleased to have the support of four prominent and highly successful North West entrepreneurs, including Mohsin Issa, who have committed to participate in the offer to an aggregate value of £25m pursuant to cornerstone investment agreements.”
Billionaire businessman Issa is the co-founder of petrol forecourt operator EG Group. Three years ago, Issa and brother Zuber teamed up with TDR Capital to buy UK supermarket chain Asda from Walmart. Last month, Mohsin Issa stepped down as Asda’s CEO.
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By GlobalData
Ryder set up Liverpool-headquartered Applied Nutrition in 2014. As well as sports protein products, the business produces supplements, energy and hydration drinks, and shakes.
Its brands include ABE – All Black Everything – BodyFuel and Shred-X.
Funds raised from the IPO will be used to “support the group’s growth plans by increasing the group’s public profile and brand awareness”, according to the stock exchange filing. Applications for the share offering, available to investors in the UK only, will close on 23 October.
In the year ended 31 July 2024, Applied Nutrition recorded revenue of £86.1m, up from £60.7m a year earlier. Adjusted EBITDA increased from £18.5m to £25.9m over the same period.
The company does business in more than 60 countries and also has a US operation to support sales in retailer Walmart. Applied Nutrition has partnerships in a number of sports including with English and Scottish football clubs, professional boxers and MMA stars.
Confirming the plans for a share float in September, Ryder said: “Since launching our first Applied Nutrition product just over ten years ago, we have demonstrated a consistent track record of delivering strong profitable growth, becoming a trusted, premium sports nutrition, health and wellness brand in an industry that continues to grow at pace.”
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