Kitwave Group announces proposed admission on AIM
Delivered wholesaler Kitwave Group has announced its proposed admission to trade on AIM.
The FWD member has 70 million shares valued at £105 million on admission, with the placing quickly attracting strong support from institutional investors – becoming significantly oversubscribed.
Kitwave intends to use the proceeds of the placing to reduce the group’s existing debt, opening the chance for further growth beyond its 26 sites around the UK.
CEO Paul Young (picture above, right) was happy to see the business take its next step and is encouraged by initial support upon the listing.
“We’re delighted with the strong support shown by our new investors, which we view as a highly positive endorsement of Kitwave’s strategy to grow and capitalise upon the large addressable market that we are well positioned to serve,” said Young.
“To date, we have executed a highly successful buy-and-build strategy, having acquired and integrated 10 wholesale distributors into the group since 2011, and we are confident that trading on AIM will enable us to continue to support this strategy.
“Furthermore, the directors believe that admission will enhance the profile of the group and its brands, improve Kitwave’s position with key suppliers, strengthen the group’s balance sheet, and provide the group with greater ability to incentivise and retain key employees going forward.
“Kitwave has worked hard to build its reputation as a trusted brand ambassador and provide the excellent levels of service that we pride ourselves on. We are confident that admission to AIM will enable us to further improve our services to existing and prospective customers across the UK and globally.
“We look forward to an exciting future as a public company and generating shareholder value.”Kitwave Wholesale Group Paul Young wholesaler