Cafe bar operator Loungers has raised more than £80m today ahead of its listing next week.
However, the group is set to valued at £185m when it floats, falling below City expectations of a £250m market capitalisation.
The owner of 146 neighbourhood, café bars and dining venues, which is backed by private equity firm Lion Capital, announced this morning a placing price of 200p per share, making the market capitalisation and enterprise value of the company on admission £185m and £212.5m respectively.
The group has also conditionally raised gross proceeds of roughly £83.3m, comprising £61.6m for the company and £21.7m for the selling shareholders.
The move comes as the leisure chain looks to pay off debt and ramp up expansion by floating on London’s Alternative Investment Market (Aim).
The group plans to roll out 25 new sites per year.
Founded in 2002 by three friends, Loungers claims to be the "only growing all-day operator of scale in the UK".
Boss Nick Collins said: "Today is a significant milestone in Loungers’ journey as it has long been our ambition to list the company on the public markets. We are delighted that our unique business has resonated strongly with investors."
He added: "We welcome all of our new shareholders to the Loungers’ family and look forward to the company’s continued growth and future success."