Fever-Tree tonic water

Premium drinks mixers company Fever-Tree Drinks has priced its flotation on London’s AIM, valuing the company at £154.4m.

Fever-Tree announced today it has sold 69.6 million new and existing shares at 134p per share with institutional and other investors.

The deal raised £93.4m, of which £4m will be reinvested into the company to ensure that it has net cash on admission following the payment of transaction fees.

A total of £89.3m will go to the selling shareholders, which comprise of private equity house LDC and the company’s directors and senior management as well as other individual shareholders.

The shares will begin trading on 7 November.

Chief executive Tim Warrillow commented: “We are delighted to have received such strong demand despite the difficult market conditions.

“The book is very well covered with a significant number of blue chip investors, a recognition of the company’s exciting international growth opportunities. We very much look forward to building on our market-leading position as a quoted company.”

On admission, the directors and senior management of the company will hold approximately 25.2% of the company’s shares, with funds controlled by LDC holding approximately 10.4%.

The mixer brand was founded in 2005 by Tim Warrillow and ex-Plymouth Gin director Charles Rolls. It now exports to over 50 markets and reported a turnover of £23.5m last calendar year.

Investec Bank is acting as sole bookrunner, broker and nominated adviser to Fever-Tree during the process.