SHAREHOLDERS in Glasgow-based fashion retailer Quiz, including founder Tarak Ramzan, are poised to rake in more than £90 million from the company’s forthcoming stock market flotation.
The family-owned “fast fashion” retailer will debut on the Alternative Investment Market (AIM) with a value of £200m, the company announced yesterday, revealing that a placing price of 161p per share has been set for the stock.
The placing caps a remarkable turnaround for the fashion retailer, which Mr Ramzan relaunched under a “prepack” deal in 2009 after it fell into administration. The entrepreneur had originally founded the company, which now has 73 standalone stores and 165 concessions throughout the UK and Ireland, in 1993.
Quiz, whose clothes are aimed at 18 to 35 year old women, expects to raise £102.7m from the placing, which has targeted institutional and professional investors.
The selling shareholders will receive gross proceeds of £92.1m, according to the Admission Document, while £10.6m of the total expected to be raised by the float will be used to accelerate the growth of the company.
Quiz said the existing shareholders will hold 48.7 per cent of the enlarged share capital further to the float, with the directors retaining a 25.8 per cent stake.
The Scottish firm, which employs 1,350 staff throughout the UK and Ireland, booked underlying earnings of £10.3m on revenue of £89.8m in its most recent financial year amid rapid growth in online sales and in its international operation – the two fastest growing areas of the business.
It is tapping into the lucrative fast fashion market, which involves styles from leading fashion houses being replicated at affordable prices within weeks of appearing on the catwalks.
Stock-market listed ASOS and Boohoo.com have successfully grown using similar models.
International expansion is a key part of the strategy for Quiz, which will become the first Scottish company to float since accountancy software firm FreeAgent debuted on the junior London market in November.
Currently present in 19 countries through 65 franchise stores, Quiz plans to add to its global portfolio with standalone stores in Spain, Cyprus, the US and Central America, as well as by rolling out international websites.
It is looking to build its presence in the Middle East and the Far East.
And the company is planning to continue growing its footprint in the UK with the opening of 20 stores over the next two years, noting that its growth will be supported by its recent investment in an 180,000 square foot distribution centre in Glasgow. Investment has also been made its supply chain, claimed to be one of the fastest in the UK fashion industry, and IT systems.
Mr Ramzan said: “Today’s announcement marks an exciting new phase in Quiz’s growth and development as a leading international omni-channel fast fashion brand.
“We have a well-invested infrastructure, a clear customer focus and a fantastic team and I am delighted that investors have recognised the company’s significant strengths and opportunities with their support.
“We are confident that the company’s admission to AIM will help Quiz to deliver its clear omni-channel growth strategy and enable the brand to achieve its hugely exciting global potential.”
As announced previously, Quiz is proposing to appoint Peter Cowgill, executive chairman of JD Sports, to its board as non-executive director. It is also proposing to add Charlotte O’Sullivan to it board in the same capacity, with Roger Mather having already been appointed.
Mr Cowgill said: “I am delighted to be joining a company with such clear and exciting growth prospects and this has been reflected by the strong levels of investor interest received throughout this process.
“We are looking forward to achieving further growth and success for all stakeholders as a public company.”
Trading in Quiz shares is due to begin on July 28.
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