(Bloomberg) -- Applied Nutrition Plc rose on its trading debut following a rare London initial public offering that delivered a windfall to former scaffolder Tom Ryder, who set up the protein-shake maker a decade ago.
Shares of the Liverpool, England-based company jumped as much as 8.4% before closing at 143.5 pence Thursday, 2.5% above the price of its IPO.
The first-time share sale raised £157.5 million ($204 million), making it one of the UK’s largest this year and giving the producer of muscle-building whey protein a valuation of around £350 million.
“If you’d had asked me 10 years ago, I’d have never have dreamed we’d be here today,” Ryder, 41, told Bloomberg Radio. He started selling protein powders and supplements as a side hustle in 2014 before turning it into his full-time job.
The offering priced at 140 pence per share, near the bottom end of its marketed range, though Ryder said he was “absolutely delighted with the price.” The stock trades on the London Stock Exchange under the symbol APN.
London’s IPO Status
The IPO follows Raspberry PI Holdings Plc’s May share sale and comes amid questions over London’s status as a leading listing venue, as some firms opt instead for New York. Not so for Liverpool native Ryder.
“We would never consider anywhere else,” he said, “We’re a proud UK company, and we want to be on the LSE.”
Applied Nutrition’s IPO consisted of 112.5 million shares from existing holders, including executives and JD Sports Fashion Plc.
The five largest investors in the deal included Abrdn Plc, JPMorgan Asset Management, Slater Investments, Polar Capital and Baillie Gifford & Co, according to a statement. Together, the investors snapped up more than 40% of the offering, according to Bloomberg calculations. Applied Nutrition worked with Deutsche Numis as the sole sponsor on the deal.
The stock sale also attracted UK entrepreneurs including Asda Express Ltd. co-owner Mohsin Issa, who agreed to be a cornerstone investor.
Europe has seen a modest recovery in IPOs in recent months after a lengthy drought spurred by concerns around higher interest rates and the economy. The UK, however, has been slower to come back, with only a handful of main market IPOs this year.
UK regulators have overhauled their rules for companies looking to make their public debut in London, part of an effort to draw more listings to the city.
Ahead of its IPO, Applied Nutrition named Tony Buffin, former CEO of wellness-products-retailer Holland & Barrett Group Ltd., as a non-executive board member, while Andy Bell, founder of the investment services firm AJ Bell Plc, joined as non-executive chairman.
“We’ve come a long way, but we’ve not scratched the surface,” said Ryder.
(Updates with closing share price in second paragraph.)
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