Patisserie Valerie priced at 170 pence per share

The cafe chain will list under the ticker "CAKE" on London's AIM, which is expected to generate proceeds of £33m for owners Risk Capital.

Despite the cautious pricing, the company's shares have already risen to 183 pence each through conditional dealing between institutional investors, reflecting positive market sentiment towards the group. The uptick in the share price has awarded Valerie with a market cap of £183m. The offering will be used to pay down debt.

Risk Capital first backed the cafe chain in September 2006, acquiring a majority stake. In May 2007, as part of the company's growth strategy, Risk Capital supported its acquisition of Druckers Vienna Patisserie.

Established in London in 1926, Patisserie Valerie currently operates 138 stores across the UK – when Luke Johnson's firm first invested it owned just 10 outlets in London. The stores offer cakes, pastries, snacks and meals, as well as hot and cold drinks.

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• Topics
• UK / Ireland
• Consumer
• IPO
• Risk Capital Partners