Virgin wines prices IPO, set for £110m float

The company is aiming to place 6,615,413 new ordinary shares and 17,731,286 existing ordinary shares, both at 197 pence per share.

The listing is expected to take place on 2 March and will raise gross proceeds of £34.9m for the selling shareholders; the placing of new shares will raise gross proceeds of £13m for the company. The market capitalisation of the company will be approximately £110m.

Liberum Capital is acting as nominated adviser and sole broker in relation to the admission.

Four VCTs advised by Mobeus Equity Partners will own approximately 36.1% of the business post-listing, with senior management owning approximately 20.3%.

Virgin Wines said it intends to use the net proceeds, together with some of its existing cash resources, to repay preference shares and existing loan notes.

Mobeus Equity Partners and Connection Capital invested a combined £15.9m of debt and equity to support the management buyout of Virgin Wines in 2013. The company was acquired from Direct Wines.

Sky News reported in October 2020 that shareholders had mandated Lincoln International to explore sale options for the business.

Established in 2000, Virgin Wines was purchased by Direct Wines in 2005. Current CEO Jay Wright had previously created mail order wine business Warehouse Wines, which was acquired by Direct Wines in 2002. Wright, alongside other executives, took over Virgin Wines in 2008 and merged it with Warehouse Wines in 2009. The combined entity generated turnover of more than £35m at the time of the 2013 buyout.

In its most recent available accounts, Virgin Wines reported a pre-tax profit of £1.7m in the year to the end of June 2019.

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• Topics
• Exits
• UK / Ireland
• Consumer
• IPO
• Mobeus Equity Partners
• Connection Capital