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Applied Nutrition targets £500m London IPO

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Applied Nutrition, the Liverpool maker of sports supplement brands including the Paddy Pimblett-endorsed Body Fuel sports drink, is targeting a £500 million float in London.

Tom Ryder, the founder of the JD Sports-backed firm, has met with nearly 30 fund managers in London to discuss the possibility of an IPO in the fourth quarter of this year, according to a report in The Times.

“We have realised that [going public] ticks all our boxes. We firmly believe we could be the company that kicks the doors in on the London Stock Exchange this year,” Ryder said.

Applied Nutrition sells protein products, collagen powders and pre-workout supplements, most of which are produced in Liverpool before being stocked in the likes of Asda, Holland & Barret and Tesco.

It has also found a footing in the States, with its products sold across some 4,100 Walmart stores.

Andy Bell, the company’s chairman and the co-founder of AJ Bell, is believed to be looking for a valuation of a minimum of £500 million and is working with advisers from Deutsche Numis.

Ryder added: “We want a sensible valuation to assure investors that we are not front-ending this. We want to say, ‘Come and join us. Let’s continue on this path.”

Applied Nutrition is expected to see pre-tax profits of £25 million in the 12 months to July, supported by revenues climbing by a third to between £80 and £85 million.

Ryder, who currently owns around 55% of the group, is believed to be wanting to sell down his stake to 30%, which could see him paid out around £150m.

JD Sports, which bought a 32% shareholding in 2021 for £25 million, is also expected to sell down its stake to between five and 10 per cent.

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