The sports nutrition brand has set a price range of 136p to 160p per share, which translates to an estimated market capitalisation of between approximately £340m and £400m.
Existing shareholders in Applied Nutrition will sell close to 140m shares, with the company having already secured the support of four “prominent and highly successful North West entrepreneurs”.
The entrepreneurs, which include Asda co-owner Mohsin Issa, have committed to a combined £25m cornerstone investment.
In a statement issued on the London Stock Exchange website, the company's directors said that the IPO hopes to support the growth plans of Applied Nutrition, raise awareness of the brand, allow the group to attract and retain talent and create a liquid market in the shares.
Founded in 2014 by CEO Tom Ryder, Applied Nutrition is based in Liverpool and reported revenues of £86m in most recent results.
Applied Nutrition in a ‘strong position’
Reacting to the news, senior vice president within Houlihan Lokey’s consumer group, Jorge Granados, said that confirmation of the IPO was a “bellwether” for the robust growth within the nutrition and wellness market.
“[The nutrition and wellness market] continues to thrive on shifting consumer trends. Increasingly, consumers are taking a proactive approach to their health, seeking out products that support immunity, gut health, and cognitive well-being,” Granados added.
“The growing demand for supplements, alongside the expansion of e-commerce and subscription models, has placed companies like Applied Nutrition in a strong position to meet evolving consumer needs and provide access to a wide catalogue of supplements. The market's focus on personalised nutrition and the rise of targeted products for segments such as female and cognitive health are also compelling to investors, offering a diversified growth strategy in a dynamic market.”
Not stopping there, Granados predicted that the market for performance supplements would continue to grow in response to the wellness and health trend that has become prevalent among consumers.
He continued: “Private equity, in particular, has a strong interest in the sector, driven by favourable global macro trends along with promising growth prospects and attractive profitability. As debt becomes more available and interest rates continue to decline, financial sponsors will be better positioned to participate in more transactions."
In other news, food giant Nestlé has announced a series of changes to its executive board, as new CEO Laurent Freixe targets quicker decision making.
