Applied Nutrition confirms plans for London float

Protein shake and supplements maker Applied Nutrition on Monday confirmed it was planning a London flotation.

The UK based company said the retail offer would run alongside a targeted offering aimed at institutional investors in the UK and elsewhere, outside the US.

No financial details were provided other than there would be a free float of at least 25% of issued share capital. Media reports over the weekend suggested the float could be worth £500m.

Applied Nutrition made revenues of £86.2 in the year ended to end July, while adjusted core earnings hit £26m compared with £18.5m a year earlier. JD Sports Fashion is the biggest shareholder with a 32% stake in the business which it bought off founder Thomas Ryder.

“A float on the London Stock Exchange would mark the next step in Applied Nutrition’s journey to becoming the world’s most trusted and innovative sports nutrition, health & wellness brand," said Andy Bell, non-executive chair of Applied Nutrition, who, also founded the AJ Bell financial services platform.

"The company has delivered impressive growth to date, driven by the increasing consumer interest in health and wellness, and the consistent delivery of new products to Applied Nutrition’s global customer base."

Hargreaves Lansdown analyst Susannah Streeter said the float would boost London's stock market after a lean period for initial public offerings (IPO).

"The IPO taps into the ballooning trend for nutritional supplements. Once reserved for bodybuilding fanatics, protein shakes, bars and vitamin boosts are becoming mainstream daily fixes for millions," she said.

"Already, the global wellness industry is worth $5.6 trillion and is set for annualised growth of almost 8% over the next few years. The company want to raise funds for a fresh phase in its global expansion."

"There is likely to be high interest in the launch, given that the IPO will include a retail offering, giving ordinary investors a chance to buy a slice of the business. This is a hugely welcome move, given that far too often retail investors are cut out of IPOs and secondary capital raising rounds. UK investors are enthusiastic holders of UK equities."

Reporting by Frank Prenesti for Sharecast.com