Supergroup will go ahead with float

Steve Dinneen
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SUPERGROUP insists its flotation later this month will go ahead despite the torrid times experienced by other firms planning IPOs this year.

The owner of Superdry and Cult Clothing brands will only achieve the lower end of its initial valuation, according to analysts, however.

The company hopes to raise £125m through the offering, valuing the brand at £375m. The firm had initially hoped for a value of £400m. Pre-tax profits last year were up 61 per cent year-on-year to £7.6m. Sales were up 87 per cent to £76.1m.

A spokesman told City A.M. plans were “powering ahead” after co-founder Julian Dunkerton finished a whirlwind fortnight of investor meetings. Dunkerton says he has met more than 80 high powered investors, most of whom were keen to see the listing go ahead.

Supergroup plans to use the capital raised to ramp up its ambitious expansion plans. It wants to increase its number of outlets from 40 to 150, in addition to its 54 concessions in House of Fraser.
Supergroup’s listing seemed to be in jeopardy after a string of humiliating IPO cancellations.
Travelport and Merlin Entertainments were forced to pull £2bn IPOs and fashion retailer New Look killed its £1.6bn flotation shortly after. Ocado is though to be going ahead with an initial offering worth in the region of £1.2bn.

Dunkerton founded Supergroup 25 years ago. His fortune will reach £200m after the float.