Applied Nutrition has announced the pricing range for its upcoming IPO, which could value the UK-based company at up to £400 million ($523.2 million). This prominent player in the food and beverage industry specializes in protein powders, bars, and nutrition drinks and is backed by prominent UK retailer JD Sports. The company plans to issue around 137.4 million shares, with a proposed price range between 136 pence and 160 pence.
In a filing made to the London Stock Exchange on October 15, Applied Nutrition stated that this indicative pricing would potentially lead to a market capitalization estimate ranging from £340 million to £400 million. Importantly, the shares will be offered by “certain existing shareholders.” JD Sports acquired a 32% stake in the company in 2021, while founder and CEO Thomas Ryder maintains his position as the primary shareholder.
Ryder expressed gratitude for the prominent backing the company has received, stating, “The company is very pleased to have the support of four prominent and highly successful North West entrepreneurs, including Mohsin Issa, who have committed to participate in the offer to an aggregate value of £25 million pursuant to cornerstone investment agreements.”
Mohsin Issa, a billionaire businessman and co-founder of petrol forecourt operator EG Group, previously teamed with his brother Zuber and TDR Capital to purchase the UK supermarket chain Asda from Walmart three years ago. Recently, Issa stepped down from his role as Asda’s CEO.
Founded in 2014, Applied Nutrition is headquartered in Liverpool. In addition to sports protein products, the company also offers supplements, energy, and hydration drinks. Its product lineup includes popular brands like ABE (All Black Everything), BodyFuel, and Shred-X.
Funds raised from the IPO are intended to bolster the group’s growth initiatives while enhancing the company’s public profile and brand awareness, according to the stock exchange filing. Applications for participation in the share offering will close on October 23 and are available exclusively to UK investors.
In the fiscal year ending July 31, 2024, Applied Nutrition reported impressive revenue growth of £86.1 million, an increase from £60.7 million the previous year. Moreover, adjusted EBITDA rose from £18.5 million to £25.9 million during this same timeframe.
The company operates in over 60 countries, with a dedicated US operation supporting sales at Walmart. Applied Nutrition maintains partnerships within several sports sectors, collaborating with both English and Scottish football clubs, as well as notable professional boxers and MMA athletes.
Commenting on the upcoming share float, Ryder stated, “Since launching our first Applied Nutrition product just over ten years ago, we have demonstrated a consistent track record of delivering strong profitable growth, becoming a trusted, premium sports nutrition, health, and wellness brand in an industry that continues to grow at pace.”
With the food and drink sector evolving constantly, Applied Nutrition’s strategic move to go public may play a pivotal role in the ongoing trends within the food and beverage industry. This IPO reflects the growing interest in health-focused consumer trends and the increasing demand for nutrition-based products, poised to create significant opportunities in the food and drink business landscape.
