JD Sports’ co-founders will float their new venture Footasylum on London’s junior market next month, the company confirmed today.
The fashion footwear and clothing retailer, whose core brands include ‘Kings Will Dream’ and ‘Glorious Gangsta’, is aimed at 16- to 24-year-olds and has around 60 UK stores.
Footasylum said its directors believe it has the potential to grow to 150 UK stores at a rate of 8 to 10 openings a year. That compares to 1,200 stores across the brands owned by JD Sports, which includes footwear retailer Size? and outdoor brands Blacks, Millets and GO Outdoors alongside the eponymous brand.
Footasylum, which was founded in 2005, increased revenues from £78m in 2015 to £147m in its 2017 financial year, and EBITDA at the group has risen from £2.2m to £11.2m.
The group hasn’t confirmed how much it plans to raise or how much its existing shareholders are selling down.
It will complete a share placing with institutional and professional investors to raise new money alongside the Aim listing, and the company’s share of the net proceeds will be used to fund growth investment, it said.
Chief executive Clare Nesbitt said:
We are thrilled to be announcing our intention to list on AIM. This is a logical next step in Footasylum’s upward trajectory.