Fat Face confirms IPO and aims to raise 110 million

British clothing retailer Fat Face has confirmed its intentions to float on the London Exchange Market in the coming weeks. The company plans to float 25 percent of its capital to raise up to 110 million pounds. "The listing of Fat Face on the London Stock Exchange marks an exciting stage in the company's

continued growth and development," summed up Sir Stuart Rose, chairman of Fat Face. As confirmed by the own company's executives on Thursday, clothing chain Fat Face is planning to raise 110 million pounds by going public at the London Stock Exchange in May.

According

to sources close to the matter, a quarter of Fat Face shares will be floated, valuing it at around 440 million pounds. The sale will be led by Citigroup and Jefferies, with Canaccord Genuity as lead manager and Lazard as financial adviser, reported Reuters.

Its controlling shareholder, Bridgepoint Capital, has been an investor since 2007, and has not had an entirely trouble-free period of ownership, having to inject additional capital during difficult trading conditions. Now, Bridgepoint is expected to reduce its controlling stake by selling shares in the IPO, although both the investing partner and Fat Face have preferred to not make comments on that by the time being.

News was welcome by shareholders, who will receive dividends of between 30 and 40 percent of the annual pre-tax profit, paid in two instalments. After struggling to keep its place in the high street, Fat Face said it is off to a solid start in 2014, with revenues up by 12.4 percent year-on-year in the 35 weeks to 1 February.

New executives accelerate Fat Face flotation in London

As advanced by Sky News on Wednesday, the fashion retailer now counts on three new board members who have been key to accelerate the flotation plans.

Darren Shapland, former Carpetright chief executive and one-time J Sainsbury finance director, is one of the new joiners and leading backer of this operation. Sources quoted by the British TV channel said the other new directors would be named as Deborah Baker, the director for people at BSkyB, the parent company of Sky News, and Maria Kyriacou, the managing director of global entertainment at ITV.

"Fat Face has gone from strength to strength in recent years under the leadership of Anthony and his senior management team," said Sir Stuart Rose, chairman of Fat Face.

Profit before tax and other items lifted 26 percent during the same period to 29.6 million pounds. Fat Face's profit margin has improved from 16.2 percent in 2011 to 17.4 percent in 2013. It is planning to open ten stores each year, while expanding and refitting some of those already in existence.

"Fat Face is an authentic UK lifestyle brand with a genuine heritage and a proven multi-channel strategy," said Anthony Thompson, chief executive.

"We have worked hard to maintain the brand's unique identity and to develop a differentiated product, authentic and personal service, and a distinct store environment which is loved by our customers," added Thompson.

Angela González Rodríguez