Apollo's Watches of Switzerland mulls IPO

The IPO could give the group, which comprises the Watches of Switzerland, Goldsmiths, Mayors and Mappin & Webb brands, a market cap of up to £800m, according to various media reports.

The luxury watch retail group released a statement saying that a potential offering would comprise both new and existing shares and that Apollo would look to reduce its stake while remaining a controlling shareholder. According to the statement, Watches of Switzerland's revenues have grown at a compound annual growth rate (CAGR) of 18% since 2014 and its EBITDA has grown at a CAGR of 35.1%.

The business generated adjusted EBITDA of £67.7m from revenues of £746m in the year ending in January 2019, according to the statement. It operates through 125 brick-and-mortar stores in addition to its e-commerce platform and sells brands including Rolex, Patek Philippe, Tag Heuer, Omega, Breitling, Cartier and Audemars Piguet.

Should the IPO proceed, Watches of Switzerland would aim for a free float of at least 25% on admission, with a potential over-allotment option of up to a further 15%.

Apollo acquired a majority stake in Watches of Switzerland in 2013. The group has since been pursuing international expansion, with a particular focus on the US market. It acquired US retailer Mayors in 2017 and now has a network of 21 stores in the country.

Barclays, Goldman Sachs International, BNP Paribas, Investec Bank and Rothschild & Sons are advising the group on the potential IPO.

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• Topics
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