Bakkavor to raise £100M by floating shares on stock market

By Gwen Ridler

- Last updated on GMT

Bakkavor is to offer 25% of its shares to float on the London Stock Exchange
Bakkavor is to offer 25% of its shares to float on the London Stock Exchange

Related tags Stock market

Bakkavor has revealed plans to raise £100M by floating at least a quarter of its shares on the London Stock exchange (LSE), as part of a bid to fund its global expansion.

The prepared foods producer intends to apply for its shares to be listed on the main market of the LSE early next month, as well as its premium-listing segment. If successful, the company will be eligible for inclusion in the Financial Times Stock Exchange UK indices.

Bakkavor will issue new shares as part of the offer and sell part of the shares held by majority shareholders Baupost and founder brothers Agust and Lydur Gudmundsson. The company intends to have a free float of at least 25% of the issued share capital.

Ceo Agust Gudmundsson said: “This IPO​ [initial public offering] will enable us to continue to invest to ensure we create value for all investors and stakeholders, and bring more great tasting food to our customers.

‘Accelerating our international growth ambitions’

New appointments by Bakkavor

  • Simon Burke: independent non-executive chairman
  • Sue Clark: independent non-executive director
  • Peter Gates: executive director

“Our experienced management team has the ability and ambition to ensure we can further strengthen our position in the UK while accelerating our international growth ambitions.”

Bakkavor also announced a number of appointments alongside its plans to float on the stock market.

Simon Burke, currently an independent non-executive director, will be appointed as independent non-executive chairman.

The company’s current non-executive chairman Lydur Gudmundsson will remain on the board as a non-executive director. Peter Gates, chief financial officer, will be appointed to the board as an executive director prior to admission to the LSE.

Former SABMiller Europe md

Former SABMiller Europe md Sue Clark has been appointed as independent non-executive director for Bakkavor. She is currently a non-executive director on the boards of paint manufacturer Akzo Nobel and drinks firm Britvic, where she also chairs the remuneration committee.

Commenting on Bakkavor’s plans, chairman-elect Simon Burke said: “Now, with solid foundations in place for the next stage of the company’s development, Bakkavor is excellently positioned to continue to build on its success and capitalise on the growth opportunities ahead.

“The board and I look forward to working with Agust and the rest of the management team to ensure the delivery of long-term returns for all investors.”

Meanwhile, last week, Bakkavor submitted plans for a £20M extension of its factory​ in Nottinghamshire, with the potential to create up to 270 jobs.

Floating on the stock market

Floating a business on a stock market involves selling a percentage of the business in the form of shares, which are subsequently traded. There are a choice of stock markets in the UK, but the two largest are the London Stock Exchange and PLUS Markets Group.

Joining a stock market turns the business into a ‘public company’. This presents a range of benefits, including access to capital, and the opportunity to increase a business’ profile and motivate staff through the introduction of share option schemes.

Source: NI Business Info

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