Joules to float on Aim at 160p a share

British lifestyle retailer Joules, which is set to float on the London Stock Exchange junior Aim market, has set the placing price at 160 pence per share, valuing the company at 140 million pounds.

Joules aims to raise approximately 77.5 million pounds through its initial public offering, and the retailer expects admission to the Aim market to take place on May 26. The listing at 160 pence per share will see Joules' founder Tom Joule receive up to 47.7 million pounds as he trims his majority stake in the fashion retailer to 32.3 percent, down from 80 percent hold.

Joules impending IPO values the retailer at 140 million pounds

LDC, the private equity branch of Lloyd's, which purchased a 20 percent stake in Joules in 2013 to support the fashion retailer's expansion scheme is also set to sell its shares during the floatation. 11.5 million pounds of the money raised will be used to repay an outstanding shareholder loan. The remaining capital raised will be used to accelerate Joules UK store expansion, as well as as overseas push as the retailer aims to open between 10 to 12 stores per year.

The lifestyle retailer's IPO comes swiftly after a strong period of growth for Joules, which counts close to 100 stores across the UK and Ireland. Joules reported a 198 percent increase in sales to 10.6 million pounds in its international markets, which includes the United States and Germany, between 2013 and 2015. Annual profit for the UK has increased by 44 percent to 105.8 million pounds during the same period.

Colin Porter, Chief Executive Officer of Joules, who was recently promoted from his former position as managing director, notes that the retailer's listing "marks an exciting new phase in Joules' development as a premium lifestyle brand. Joules is a much loved brand with a rare heritage and we are delighted with the strong response to the placing, reflecting investors' recognition of the significant further opportunities for the Group both in the UK and internationally."

Joules has been strengthening its company board prior to its listing with the appointment of two directors: Jill Little, former strategy director at John Lewis; and David Stead, former chief financial officer at Dunelm, who joined as non-executive director and senior independent director respectively. The lifestyle retailer has appointed brokers Peel Hunt and Liberum to oversee the IPO, who acted as advisers together with Rothschild.

Photos: Joules, Facebook