Hollywood Bowl IPO to value business at £280m

Hollywood Bowl IPO to value business at £280m

Hollywood Bowl, the UK’s largest ten-pin bowling operator, is set to float on the London Stock Exchange next month, the company has said. The initial public offering (IPO) is expected to value the company at £280 million.

Hollywood Bowl announced in a statement yesterday that it intended to float in London, offering shares to institutional and professional investors. The group noted that the admission to the LSE’s main market was expected to occur next month. The Financial Times noted in its coverage of the news that the float is set to value the company at about £280 million.
The group operates 54 bowling centres in the UK under the ‘Hollywood Bowl’, ‘AMF’ and ‘Bowlplex’ brands, and accounts for about a third of the UK ten-pin bowling market. The operator quoted research by retail consultancy Pragma as showing that ten-pin bowling was the fastest growing segment of the leisure sector between 2013 and 2015 with six-percent growth, compared to an average growth of three percent across the wider leisure industry.

“We are very excited about the next stage in the development of Hollywood Bowl Group, and believe we have all the attributes to succeed as a listed business,” the company’s chief executive Stephen Burns said in the statement, adding that the IPO would allow the group “to continue to build the momentum of the business, providing a solid platform for further growth”.
The Telegraph noted that Electra, the private equity firm which holds 85 percent in Hollywood Bowl, plans to sell half of its shares in the IPO, which is managed by Investec. The group’s management will retain the majority of its 15-percent stake.
The news of the Hollywood Bowl IPO comes ahead of the UK referendum on the country’s membership in the EU a week from today, which has prompted some companies to delay new flotations.

By Michael Catchpole
Michael is a freelance writer with years of experience writing about financial products. During his time reporting for Invezz, Michael focused on the real estate and stock markets.

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