Stock Spirits to raise funds in London listing

Oliver Smith
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STOCK Spirits Group, the central and eastern European spirits producer, has announced its intention to float on the London Stock Exchange before the end of October, becoming the latest company to choose the UK market to source fresh funds.

“We have been able to deliver sustained organic profit growth over the past five years and an IPO is the next logical step to support the company’s ambitious growth plans,” said chief executive Christopher Heath.

The company, which is the number one supplier of spirits in Poland and Czech Republic, had gross profits of €79m (£66.4m) on revenues of €153m for the six months to 30 June.

Stock Spirits is hoping to raise £52m from the sale, which it will use to follow its goal to become the leading spirits provider in the central European region.

Its initial public offering will be a minimum free float of 25 per cent of the company, which is hoping to be valued at between £600m and £700m in the sale, a person familiar with the matter said.

Both majority-owner Oaktree Capital Management and company management will also sell shares in the offering, although Oaktree will remain the group’s largest shareholder following the float.

Stock Spirits, whose drinks range from high-end Polish vodka Czysta de Luxe to fruit-flavoured liqueurs and Spanish brandies, was established in 2007 when Oaktree merged Czech business Stock with its Polish counterpart Polmos Lublin.



Slaughter and May is the law firm advising Stock Spirits Group on its initial public offering in October.

The legal team is being led by Richard Smith and Jeff Twentyman from the firm.

Richard Smith has previously worked on major company floats at Slaughter and May, including Countrywide’s return to the London Stock Exchange in March.

Twentyman is the head of the law firm’s private equity group and is listed as a leading lawyer in the field of corporate law, mergers and acquisition high-end capability according to Chambers UK.

Slaughter and May is a London-based law firm and a member of the so-called magic circle of leading law firms. The company has advised on a number of public offerings in recent years, including Esure last year.

Stock Spirits initial public offering is being led by Chris Snoxall and Andrew McNally of Berenberg.

The offering will be coordinated and co-sponsored by JP Morgan Securities and Nomura International.

Both banks are also both co-bookrunners along with Jefferies International.