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Bargain Booze's parent company to go public

Published:  24 July, 2013

Conviviality Retail, owner of Bargain Booze, is looking to raise between £60 million to £65 million in an initial public offering on July 31, 2013, on the Alternative Investment Market (AIM).

Bargain Booze, which is owned by Conviviality Retail, is one the largest off-licence convenience chains in the UK, with over 611 stores and 461 franchisees. It is particularly strong in the north and north west of England. The management team is currently led by Diana Hunter, who has a strong background in the retail market and was previously at Waitrose and Sainsbury's.

It has issued over 64 million ordinary shares that will begin trading on July 31. The funds raised from the IPO will be used primarily to eliminate debt, buy out ECI, a private equity group that backed a £63.5 million management buyout of the company in 2006, and expand the business. Additionally, 10% of the shares will be used to reward franchisees who reach certain market targets.

Bargain Booze will join Majestic Wine as a listed business on AIM, which acts as a London Stock Exchange-style incubator for small, fast-growing companies that want access to investment capital without the cost and regulatory burden of a full listing on the main market.