Hollywood Bowl Group, the UK’s largest bowling alley operator, has announced an initial public offering (IPO) price of 160p per share, giving it a market cap of £240mln on admission.
The group will issue 113.2mln shares when it joins the London Stock Exchange next Wednesday (21 September), giving it a market cap of £240mln on admission.
It originally intended to float in July, but the market uncertainty in the wake of Brexit led them to postpone.
Hollywood Bowl, which is 85%-owned by Electra Private Equity (LON:ELTA), operates 54 bowling centres around the UK.
The IPO is expected to raise £181.3mln for Electra, directors and other selling shareholders, the company said.
The company’s directors and senior management are subject to a 12 month lock-in agreement, while Electra has committed to a six month lock-up.
“I am delighted with the response we have received from investors toward Hollywood Bowl Group,” said chief executive Stephen Burns.
“We have achieved a huge amount over the past few years, transforming the business through investment and acquisition.”
Retail consultancy Pragma estimates that ten-pin bowling has been the fastest growing segment of the £80bn leisure industry over the last two years.
Revenues at Hollywood Bowl grew by 9% last year to £86mln, with like-for-likes climbing 11%.
Bowling-related activities account for 47% of the firm’s revenues, with 28% of sales coming from food and drink and a further 23% from its arcade machines.
News of Hollywood Bowl’s IPO comes after Pure Gym, Go Compare and Biffa all announced plans to float on the LSE earlier this week.
The listings have been seen as something as a bellwether for the London markets as a whole, with analysts explaining that they are indicative of improving market conditions.
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