NorthEdge-backed Ramsdens to float with £26.5m market cap

The listing will see the firm place 5.8 million new and 12.3 million existing shares priced at 86 pence apiece, raising £15.6m.

Following the flotation, £10.6m of the proceeds will be returned to investors, including NorthEdge, company directors and employees. The remaining £5m will be used to repay existing loan notes and costs associated with the placing.

Following the IPO, the GP will retain a 31% stake in Ramsdens, which will continue to explore acquisition opportunities and look to open new stores.

Under NorthEdge's tenure, Ramsdens has increased its number of stores from 120 to 127 and invested in its online platform. The GP also introduced former Warehouse Express and Original Additions chairperson Andrew Meehan as Ramsdens' non-executive chairperson, who will continue in his role following the flotation.

Liberum Capital is acting as nominated adviser and sole broker for the listing, which is expected to take place on 15 February.

Previous funding
NorthEdge invested in the management buyout of Ramsdens in September 2014 with capital drawn from its £225m debut fund.

Company
Founded in 1987 and headquartered in Middlesbrough, Ramsdens is a pawnbroker and foreign exchange business. According to documents issued with the pricing announcement, the business generated EBITDA of £4.7m in the year ending March 2016, up from £3.7m two years earlier. However, turnover dropped from £39m to £30m during the same period.

People
NorthEdge – Andy Ball (founding partner).
Ramsdens – Peter Kenyon (CEO); Martin Clyburn (CFO).

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