Virgin Wines IPO press release
2 March 2021
Connection Capital toasts Virgin Wines’ oversubscribed Initial Public Offering on AIM
London, 2nd March 2021
Virgin Wines (“The Group”), one of the UK's largest direct-to-consumer online wine retailers, has begun trading on AIM, a sub-market of the London Stock Exchange, following its Initial Public Offering.
The offering was substantially oversubscribed, attracting strong interest from high quality institutional investors. Connection Capital clients and Mobeus first invested in the Group in 2013 to back the highly experienced, incumbent management team. Today’s IPO has delivered a successful outcome for all parties, giving:
- Virgin Wines the platform to execute its ambitious growth plans, as it leverages key strengths to continue to win market share and drive shareholder value
- While Connection Capital clients achieve a rewarding exit that delivers an attractive return of 7.6x
Connection Capital and Mobeus are delighted to announce that shares in Virgin Wines, one of the UK's largest direct-to-consumer online wine retailers, have begun trading on AIM, a sub-market of the London Stock Exchange, today.The Initial Public Offering was substantially oversubscribed, attracting strong interest from high quality institutional investors. The market capitalisation of Virgin Wines, based on the Placing Price of 197 pence per share, is approximately GBP 110m.
Virgin Wines works with its network of trusted suppliers and winemaking partners from many locations around the world to source, design, blend and sell award-winning and largely exclusive premium wines. These wines are sold to the Group's loyal customers through its WineBank and Wine Plan subscription schemes and on a pay-as-you-go basis. The Group also operates B2B and gift sales channels and recently expanded its product offering to include carefully curated collections of premium spirits and craft beers.
After a rewarding seven year partnership, Connection Capital clients will realise their investment in full, delivering an attractive 7.6x return to clients.
Connection Capital and Mobeus jointly led the transaction to support Virgin Wines in 2013 with an overall funding package of £15.9 million. The deal structure, with no external senior debt, combined with our long-term partnership and experience, has allowed the Group to invest in its new website, direct marketing, new customer acquisition channels and propositions, and grow its gift and corporate business from scratch.
Jay Wright, Chief Executive Officer of Virgin Wines, said: “We are delighted by the strong support we have received from blue-chip institutional investors and that the Placing was significantly oversubscribed. Our Admission to AIM will provide us with the platform to execute our ambitious growth plans, as we leverage our key strengths to continue to take market share and drive shareholder value. We welcome our new shareholders to the Company and are looking forward to our future as a public company and the opportunities it will bring for everyone involved with Virgin Wines. We are very grateful for the excellent support Connection Capital has given us over the last seven years.
Michael Coupland, Investment Director at Connection Capital, adds: “We have greatly enjoyed working with Jay and his team to deliver on the company’s growth ambitions. Virgin Wines is a special business and is well positioned to continue building on the underlying momentum in the online wine market. The IPO marks an important milestone for the company, and everyone involved should be incredibly proud of what has been achieved since our investment seven years ago. We wish the team all the best of the future as they embark on the exciting next stage of their journey. It’s great to have locked in such a strong return for our clients and secure Connection Capital’s second successful exit this year.”