KCP's Gear4music lists on AIM

Following the IPO, KCP has retained a 24% shareholding in the company.

The IPO saw £10.3m worth of existing shares being placed, which will be used to pay down existing debt. Of the £10.3m raised, £4.3m will be used to finance the business's expansion strategy. 

Following the placement, Gear4Music plans to open a new London flagship store, and intends to invest in marketing, the development of its online platform and the expansion of its product range.

The business will also seek to continue with the international expansion strategy it has adopted since KCP's first investment.

Panmure Gordon acted as financial adviser, nominated adviser and broker in the placement.

Previous funding
KCP acquired a minority stake in Gear4music for £3.4m in March 2012. The company has since extended its online platform to serve 19 countries, incorporating 15 different languages and trading in eight currencies.

Over the past two years, the business has increased revenues from £12.3m to £24.2m. It generated adjusted EBITDA of £1.19m in the latest financial year, up from £790,000 the previous year.

Company
The retailer was founded in 2003 and currently operates from a showroom and warehouse in York. It manufactures its own-brand products and sells instruments by 550 brands including Fender, Gibson and Yamaha.

People
KCP's Peter Armitage remains Gear4music's non-executive director following the listing. Andrew Wass is CEO of Gear4music.

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