Flotation an option in 2020
BrewDog seeking IPO to give investors exit route
James Watt: looking at options (pic: Terry Murden)
Craft brewer BrewDog says it is targeting a stock market flotation in the next two years “if market conditions are right”.
The Scottish brewer – which was valued at £1 billion last year after selling a 22% stake to private equity – has a preference for a London initial public offering (IPO), though it has not ruled out New York.
“We are working to schedule to at least be in a position to have the option to list some time in 2020, if market conditions are right,” he told the Press Association.
He added that, with around 90,000 so-called equity punk investors on board thanks to hugely successful crowdfunding efforts, an IPO would be the natural next step.
“We see a long term IPO as an evolution of that model,” he said.
A stock market listing will also offer its crowdfunding retail investors the opportunity to cash in their investments, as they can only trade shares once a year on a matched buying and selling basis. Critics say the company’s claims around the value of the shares understates the impact of this arrangement and that realising value is currently difficult.
“An IPO would give some long term liquidity for our equity punks,” Mr Watt admitted, while adding that the Fraserburgh company would continue to look to crowdfunding.
His comments come as the group published its BrewDog Blueprint which offers retail investors the opportunity to open their own franchise BrewDog bars, with an initial trial across 10 locations.
It will cut payment to seven days for small breweries that supply them with beers.
The company runs 70 bars around the world, employing more than 1,000 people. Its Punk IPA is the bestselling craft beer in Britain.
Brewdog, which has a brewery in the US and one under way in Australia reported a £1.4 million pre-tax profit on revenue of £111.6m in 2017.
Mr Watt, 36,…
