Mobeus toasts Virgin Wines’ oversubscribed Initial Public Offering on AIM
Virgin Wines (“The Group”), one of the UK's largest direct-to-consumer online wine retailers, has begun trading on AIM, a sub-market of the London Stock Exchange, following its Initial Public Offering.
The offering was substantially oversubscribed, attracting strong interest from high quality institutional investors. Mobeus and Connection Capital clients first invested in the Group in 2013 to back the highly experienced, incumbent management team.
Today’s IPO has delivered a successful outcome for all parties, giving:
- Virgin Wines the platform to execute its ambitious growth plans, as it leverages key strengths to continue to win market share and drive shareholder value
- Mobeus VCT Shareholders access to future growth from this distinctive, direct-to-consumer business, set to benefit further from the paradigm shift to convenience
- While Connection Capital clients achieve a rewarding exit
Mobeus and Connection Capital are delighted to announce that shares in Virgin Wines, one of the UK's largest direct-to-consumer online wine retailers, have begun trading on AIM, a sub-market of the London Stock Exchange, today.
The Initial Public Offering was substantially oversubscribed, attracting strong interest from high quality institutional investors. The market capitalisation of Virgin Wines, based on the Placing Price of 197 pence per share, is approximately GBP 110m.
Virgin Wines works with its network of trusted suppliers and winemaking partners from many locations around the world to source, design, blend and sell award-winning and largely exclusive premium wines. These wines are sold to the Group's loyal customers through its WineBank and Wine Plan subscription schemes and on a pay-as-you-go basis. The Group also operates B2B and gift sales channels and recently expanded its product offering to include carefully curated collections of premium spirits and craft beers.
The four evergreen Venture Capital Trusts advised by Mobeus own approximately 36.1 per cent and senior management own approximately 20.3 per cent of the issued Ordinary Shares. After a rewarding seven year partnership, Connection Capital clients realise their investment in full, delivering an attractive 7.6x return to clients.
Mobeus and Connection Capital jointly led the transaction to support Virgin Wines in 2013 with an overall funding package of £15.9 million. The deal structure, with no external senior debt, combined with our long-term partnership and experience, has allowed the Group to invest in its new website, direct marketing, new customer acquisition channels and propositions, and grow its gift and corporate business from scratch.
Ed Wass, Mobeus Director who sits on the Virgin Wines board, commented: “The online wine market continues to expand, as more customers move to convenience. Virgin Wines has demonstrated strong growth with a range of exclusive, boutique quality wines, bought based on customer ratings, and backed by the power of the Virgin brand. Mobeus is very proud to have supported the Group’s growth since 2013 and looks forward to continuing to be an active owner of the Group, supporting Jay and the team through the next chapter of their story.”
02 March 2021
“We are delighted by the strong support we have received from blue-chip institutional investors and that the Placing was significantly oversubscribed. Our Admission to AIM will provide us with the platform to execute our ambitious growth plans, as we leverage our key strengths to continue to take market share and drive shareholder value. We welcome our new shareholders to the Company and are looking forward to our future as a public company and the opportunities it will bring for everyone involved with Virgin Wines.
“We are very grateful for the excellent support Mobeus has given us over the last seven years and look forward to continuing that partnership."
Jay Wright, Chief Executive Officer of Virgin Wines