Online womenswear fashion brand In The Style has raised £11m through a share placing ahead of its float on the London Stock Exchange's AIM market while a further £49m has been secured for existing investors. As a result, the firm will have a market capitalisation of about £105m.
The Salford-headquartered company has outlined its proposed admission to trading on AIM and its conditional placing of 5.5million new ordinary shares of 0.25p each and 24.5million existing ordinary shares, both at a price of 200p per share with institutional and other investors.
The placing was "significantly oversubscribed", enabling the business to increase the number of sale shares available to new investors and to set the placing price at the top of the valuation range.
The news comes after In The Style first announced its plans to float on AIM at the start of this month.
The business, which was founded in 2013 by entrepreneur Adam Frisby with £1,000 of seed funding from his bedroom, works with influencers on a long-term basis to collaboratively design, develop and promote branded fashion collections.
On admission, the company will have 52,499,998 ordinary shares in issue and a free float of approximately 44.2%.
Causeway Capital Partners I LP will own approximately 14.5% and senior management will own about 27.3% of the issued ordinary shares.
In early 2018, Causeway Capital completed a growth capital investment in return for an approximately 49% interest in the business, providing Baronsmead VCT with an exit.
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In The Style has said it intends to use the net proceeds of the placing receivable by it together with some of its existing cash resources to continue to invest in growing and developing its social media influencer network, selective brand marketing, entry into certain international markets through its proven influencer model, infrastructure and technology and assist with the move to a new, larger warehouse in 2021.
Admission and commencement of dealings on AIM are expected to take place at 8am on Monday, March 15.
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Chief executive Adam Frisby said: "We are thrilled by the very positive reception to our IPO from a wide range of high-quality institutional investors.
"This is a great testament to In The Style's differentiated brand, innovative influencer collaboration model, and exciting opportunities for future growth.
I'm incredibly proud of the ITS brand and would like to take this opportunity to thank everyone connected with In The Style - including our team, customers, partners and influencers - for their continued support of the business, which has contributed to both its success so far and today's exciting milestone.
"We are delighted to welcome our new shareholders and are looking forward to the next exciting chapter of In The Style's journey as a public company."
Liberum Capital is acting as nominated adviser and sole broker in relation to the admission.
The retailer achieved net sales of £35.4m net sales and £3.6m in adjusted EBITDA in the nine months to December 31, with sales up 159% from £13.7m.