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Zeus Capital advises on AIM IPO of Conviviality Retail Plc

31st July 2013


Zeus Capital has advised Conviviality Retail Plc (Ticker:CVR) on its AIM IPO and institutional fundraise. On admission ConvivialityRetail had a market capitalisation of £67 million. The £64 million fundraise was more than twice over subscribed with 30 institutions participating.

The IPO is the largest by a corporate on AIM in 2013 to date. Zeus Capital acted as Nominated Adviser and Joint Broker.

The Conviviality Retail transaction highlights Zeus Capital’s full service capability, with services provided including public market advisory, debt advisory, equity research, equity sales and private equity advisory. The breadth of skills throughout the team differentiates Zeus Capital from most smaller corporate finance and broking houses, allowing us to add value to clients across multiple disciplines.

Conviviality owns one of the UK’s largest franchised off-licence and convenience chains with 611 stores (as at 30 June 2013). The Group is a buying, marketing and logistics business offering a full support package to its 461 Franchisees. Conviviality’s Franchisees currently operate under six fascias which include Bargain Booze and Bargain Booze Select Convenience.

The Group has a strong market presence (particularly in the North West of England) and has established a stable financial track record over a number of years. Revenue for the year ended 30 April 2013 was £372 million with Adjusted EBITDA of £12.5 million.

The listing on AIM has left the company free of core debt and provided a three times return on investment for previous owners ECI, the private equity firm which backed a management buy out in 2006.

John Hayhurst, Partner at ECI commented;
“ECI and the Conviviality Board were hugely impressed by the delivery capability of Zeus Capital and the speed of execution in project managing the IPO within timetable.  Given that timetable included the creation of an innovative franchisee share incentive plan this timescale was astounding.  As a Board we also took great re-assurance in the knowledge the Zeus Capital team had of taking a company onto AIM and in their confidence of ultimate success which was absolutely paramount to us.   Perhaps the greatest differentiator was that this service was delivered by a full team of highly experienced and seasoned corporate financiers who showed incredible commitment to delivering a successful outcome for all parties.”

Diana Hunter, CEO of Conviviality Retail commented;
“Zeus Capital has been an outstanding team to work with and managed the process expertly at all times and I am looking forward to continuing the excellent relationship with them as Nomad and Broker.

As a business we are delighted to have the backing of our institutional shareholders and we look forward to building an even better business for our Franchisees, Employees and Shareholders. “

John Goold, Joint CEO of Zeus Capital commented;
“We were delighted to act on the deal and in particular to support Diana Hunter in her significant effort to create an innovative incentive scheme for the franchisees which I do not believe the stock market has seen before. The scheme could prove to be very powerful. The deal highlights the ability of Zeus Capital to bring together the public and private company service offerings. I believe very few smaller firms could have achieved this.”