Revolution Bars Group prices IPO at bottom of range

Revolution Bars Group has priced its initial public offering at the bottom of its range, valuing the company behind the chain of Vodka bars at about £100m.

The group, which has 53 vodka bars and five rum bars called Revolucion de Cuba, priced its shares at 200p, the lower end of the expected 200p to 240p it set when it unveiled its intention to float in February.

The bar group is expected to raise total gross proceeds of £86m for the selling shareholder, Caspian Bidco, with no proceeds going to the company.

The company plans to expand its Revolucion de Cuba bars to 40, and its other vodka bars from 53 to 100, at a rate of five venues a year.

"It is a big moment for the business," said Mark McQuater, chief executive of Revolution. "We have been in private equity for a number of years. We are starting with a clean balance sheet and no debt. It is a very good starting point."

Revolution is the latest in a string of companies to rush to list their shares ahead of the general election in May. John Laing, the British infrastructure group, priced its shares at the bottom of its range while HSS, the tool hire group, fell 5 per cent on its debut.

However, following disappointing performance of these IPOs, investor appetite has waned and some private equity groups are now opting to sell to their peers instead.

In January, thetrainline.com was bought by private equity group KKR for £500m just weeks after announcing plans to list. Hellman & Friedman's prospective £2bn bid for Auto Trader - the UK's largest marketplace for used cars which is owned by Apax - could derail its planned flotation.

Revolution, which has moved towards offering more fresh food and handmade cocktails as it tries to target more upmarket customers, reported revenues of £58m and adjusted earnings of £7.9m for the six months to December 31.

Revolution reported revenues of £58m and adjusted earnings of £7.9m for the six months to December 31.

The company said in February that, as part of its plans to float, it had recruited Keith Edelman, former managing director of Arsenal FC and current chairman of Goals Soccer Centres, as non-executive chairman.

The company previously traded on London's junior Alternative Investment Market as Inventive Leisure before it was taken private in 2005 by private equity group Alchemy Partners.

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