Bagir Group debuts at London Alternative Investment Market

Israeli tailoring firm Bagir Group Ltd has completed a successful initial public offering (IPO) of its shares at London´s alternative stock market, the Alternative Investment Market (AIM). The suits maker Bagir Group is being advised by N+1 Singer in an IPO that has raised 21 million pounds.

Bagir Group reached a valuation of 28 million pounds and its shares will start trading on Tuesday. As confirmed by the company earlier this month, the IPO follows the cancellation of offerings by several companies, including Israel's Matomy Media Group Inc.

Reportedly, the IPO proceeds gave Bagir a positive equity of 11.96 million pounds or 20 million dollars, allowing it to pursue its growth plans.

Bagir's IPO at London's AIM: last step of a successful turnover plan

Bagir, controlled by Ishay Davidi's FIMI Opportunity Funds and Zvika Barinboim's SG Textile Ltd., issued 60 percent of its share capital. Following the IPO, FIMI's stake fell to 20 percent and SG Textile's stake fell to 15 percent.

The company posted a 15 percent rise in revenues to 59.5 million pounds in the year to December 31, 2013, on earnings up 83.2 percent to 3.6 million pounds.

Bagir fell into a severe crisis several years ago, partly because of falling orders by British retailer Marks & Spencer. Bagir’s own brands, including labels such as Simon Carter and Peckham Rye, are also sold in department stores. The group’s other main market is in the US, where its customers include Brooks Brothers and Jos. A Bank.

The company had a shareholders' equity deficit and heavy debts to banks and its controlling shareholders. Under president and CEO Daniel Taragan and chairman Samuel Vlodinger, the company turned around in the past two years, resumed growth and a positive cash flow from operations, published trade journal ‘Globes’.

Angela González Rodríguez