Ultimate Products' offer price has been set at 128p, which will equate to a market capitalisation of approximately £105.2m.
The offer comprises 41,084,800 shares, representing 50 per cent of the company’s issued share capital on admission.
Shore Capital is acting as sponsor, global co-ordinator and bookrunner to the Company, and Cenkos is acting as joint bookrunner.
Admission and commencement of unconditional dealings on the London Stock Exchange is expected at 8am on 6 March 2017
Subject to satisfying the necessary criteria, it is expected that the company will be eligible for inclusion in the FTSE UK Index Series.
It is the third biggest float of the year so far by money raised, and fourth by market cap. The shares are now trading at 147p in grey market, up 15 per cent.
Simon Showman, CEO of Ultimate Products, said: “We are delighted to be welcoming new shareholders to the register as we take the business forward with this important step in Ultimate Products’ story.
“Ultimate Products is a fast growing business focused on selling consumer goods for the home under well-known brands to over 300 retailers across 38 countries. Our branded, mass-market strategy has consistently delivered significant organic revenue and profit growth, and we are well positioned for further growth as we leverage our strengths to take advantage of the substantial structural changes that continue to impact the retail market.
“We have been very pleased by the strong interest in our IPO that investors have shown, and we look forward to the benefits the flotation will create for our company, our people and our customers in the months and years ahead.”
A rapidly growing ‘house of brands’ based in Oldham, Greater Manchester, Ultimate Products also has an office and showroom in Guangzhou in China. The group employs 216 staff: 181 in the UK, 33 in China, one in Hong Kong, one in Belgium.
For the year ended July 2016, revenue was up 23.per cent to £79m. Continuing profit before tax was up 50 per cent to £7.5m. Yesterday, Ultimate revealed its first quarter 2017 results, with revenue of £33m, up 48.7 per cent year-on-year and Ebitda of £4.4m, up 58.2 per cent year-on-year.
Ultimate Products develops, designs, sources and distributes a wide range of consumer products including small domestic appliances such as juicers and grills, housewares, headphones, and ironing boards. It owns the Beldray and intempo brands and licences Salter products.
The business sells around 2,500 different products in these categories to over 300 retailers across 38 countries. Nearly three quarter of sales are in the UK but it is understood that the firm sees scope to leverage its British heritage brands in other markets.
Customers include Amazon, Argos, B&M and Homebase.
CEO Simon Showman founded the business in 1997. Managing director Andy Gossage, joined in 2005 when Lloyds Development Capital acquired a 46 per cent stake. Ultimate recently appointed Jim McCarthy, ex Poundland, as chairman.
They see three key growth drivers: online; with discounters such as B&M in the UK and Action in Europe; increasing penetration with supermarkets such as Aldi, Asda, Lidl, Morrisons, Sainsbury’s, Tesco and Waitrose.
The group has a track record of acquiring brands, often from distressed sellers and successfully re-launching them and is expected to continue doing this.