Quiz raises £100m-plus in IPO, plans to expand at home and in US, Europe, Asia

By

Sandra Halliday

Published
Jul 20, 2017

On Thursday, Quiz Clothing said its plan to trade on the London Stock Exchange was on track with a successful IPO and the company’s shares to be listed by the end of this month.

That news set the seal on what has been an impressive few years for the Scotland-based business that has prove itself to be one of the more nimble players in the hard-pressed UK retail sector.

But it will also be one of the more nimble players abroad with its plans for the next two years including fast expansion in Europe, the US and Asia.

The company raised £102.7 million with its Alternative Investment Market l(AIM) listing, at a share price of 161p and said it would trade under the ticker QUIZ. That means a bonanza for the selling shareholders, who get a pre-tax figure of £92.1 million out of the proceeds, while £10.1 million will be spent on boosting the firm’s current £90 million turnover.

While it listed a big chunk of shares, existing shareholders will still control almost half (48.7%) of the firm’s shares and directors will hold 28.5%.

Quiz’s IPO will give it initial market capitalisation of £200 million and when the shares started trading next Friday (July 28) is remains to be seen whether that valuation will improve.

Rival UK retailers such as Asos and Boohoo have seen their values soaring as demand for their shares has been high. And while longer-established fashion retailers have seen share demand slumbering, those stores that have proved they can make money even in tough times now have valuations that are many times the average share-price-to-earnings ratio.

Quiz founder and CEO Tarak Ramzan said today’s news marked “an exciting new phase in [its] growth and development. 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.”

He also said the AIM listing should help the firm deliver its omnichannel growth strategy and enable the brand to achieve its global potential.

The company currently has 73 stores and 165 concessions in the British Isles (with more planned) and saw sales rising 21% annually from 2015 to 2017 with profit up 30.6% to £10.3 million. It also has growing international operations through franchised stores, wholesale and online partners.

Its 24-month plan includes opening international websites in Spain, the US and Australia, standalone stores in Spain, concessions in Cyprus, the US, and Central America, as well as further expansion in the Middle East and Asia.