Online cycling retailer Wiggle in float rumours, valuing the company at around £440m; The company made pre-tax profits of £12.3m on revenues of £140.7m

May 23, 2014 Leave a comment

Online cycling retailer Wiggle in float rumours

May 12, 2014

Wiggle was sold to private equity group Bridgepoint in 2011 for £180m ($192.4 million). Photo: John Veage

Wiggle, the privately owned online cycling retailer, is working with advisers at boutique investment bank Rothschild on a potential flotation.

The company, owned by private equity group Bridgepoint, is understood to be looking at options for the business.

Bridgepoint already has one London listing under way, with the forthcoming flotation of casual wear retailer Fat Face. It is expected the retailer, chaired by Sir Stuart Rose, will set the pricing for its initial public offering early this week and is expected to value the company at around £440m.

Wiggle was previously touted as an IPO candidate in 2011. However, former owner Isis Partners chose not to pursue the listing, instead selling the group to Bridgepoint in a deal valuing the business at £180m — around 12 to 13 times the company’s earnings at that time.

A Bridgepoint spokesman said no advisers had yet been mandated for an IPO, but Rothschild has been a longtime adviser to the company.

Two sources familiar with the situation said that Wiggle was considering the flotation, with one adding it would be “mad not to” given the current multiples that are available in IPOs to companies with an online presence.

Wiggle last week filled a vacant spot on its management team by naming former Brighthouse director Giles David as its chief financial officer (CFO). In March Wiggle published a recruitment advert for a CFO in which it said “IPO experience would be an advantage”.

The company made pre-tax profits of £12.3m on revenues of £140.7m, for the year ending April 2013.

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