By Yamini Kalia and Anousha Sakoui
(Reuters) -Applied Nutrition’s shares opened 7% above its initial public offering (IPO) price on Thursday, giving the British supplements maker a valuation of 375 million pounds ($486.11 million) in one of the largest London IPOs this year.
The IPO provides a boost for Britain’s financial markets, which have fallen behind regional counterparts due to dwindling investor confidence and a lack of listings.
“Investors are discerning and have a high bar, but the market is definitely looking for new companies and the depth of the market is there,” said James Taylor, co-head of Investment banking at sole bookrunner Deutsche Numis.
The United Kingdom has had only nine IPOs so far this year, Dealogic data shows, compared with 18 in 2023. It has lagged other European countries, placing 10th among European, Middle East and African nations in terms of IPO value.
Applied Nutrition’s shares opened at 150 pence on the London Stock Exchange. The company had priced its offering 140 pence per share, at the lower end of a 136-160 pence target range.
The shares, which retreated from the session high of 151.8 pence, were up 3.6% at 145 pence by 1127 GMT.
The Liverpool-based company will be backed by supermarket group Asda’s co-owner Mohsin Issa, with other cornerstone investors including William Ainscough, Tom Morris and George Downing.
It raised 157.5 million pounds by selling 112.5 million shares.
Applied Nutrition is backed by British sportswear retailer JD Sports, with founder and CEO Thomas Ryder maintaining a majority shareholding.
($1 = 0.7714 pounds)
(Reporting by Yamini Kalia in BengaluruEditing by Mrigank Dhaniwala, Varun H K and David Goodman)
