Quiz takes the London’s AIM by storm eyeing 200 million float

This week, the British fashion retailer, formerly a kilt-maker, will be joining London's alternative market, the AIM, in a float expected to provide Quiz with a market capitalisation of 200 million pounds.

Of the funds raised in this float, posed to be this year’s largest retail one, circa 92.1 million pounds will go towards selling shareholders and the remaining 10.6 million pounds will be used to accelerate the company's growth.

On admission to AIM, expected next Friday, Quiz will have a market capitalisation of 200 million pounds. After the listing, the family will still own 48.7 percent of the company but have committed not to sell any more shares for a year.

The retailer was founded in the early 1990’s by Tarak Ramzan. Today, the company is led by several family members, including Tarak’ sons. Sheraz, one of Ramzan’s sons, said to media earlier this month that “I’m in the office today and planning to focus all my time and effort here.” He holds the title of chief commercial officer. “It’s an exciting time [for the family], I won’t lie, but we are very grounded and focused on the goals we have set,” Sheraz added.

Would Quiz be the next Asos or Boohoo?

It’s worth recalling that both Asos and Boohoo, direct competitors for Quiz, floated on the London’s alternative market, being currently valued at 4.75 billion pounds and 2.55 billion pounds respectively, though shares in both have soared in recent years.

In fact, Boohoo's shares have risen by more than 350 percent since listing in 2014, whereas shares in Asos have gained almost 150 percent since the end of 2014.

At a time when high street fashion sales are transferring online, investors have high expectations about online fashion retailers.

Sheraz Ramzan said Quiz was different to Boohoo as it pursued several routes to market, operating 73 UK stores and 165 department store concessions as well as a website. It operates in 19 countries through deals with franchise and online partners.

Analysts said institutional investors, who include Schroders and BlackRock, were impressed by Quiz’s strong financial track record, reported ‘The Guardian’ over the weekend. Sales jumped nearly 30 percent to 89.8 million pounds in the year to 31 March while operating profit increased 44 percent to 10.3 million pounds.