Loungers is to offer shares in the newly listed business to its longest serving employees, MCA understands.
The group, which floated on AIM on Monday, is offering just over 600 of its longest-serving staff £1,000 worth of shares each. The incentive is conditional on a further year’s service with the company.
Loungers chief executive, Nick Collins, told MCA: “One of the biggest motivations for becoming a plc was that we wanted broader employee share ownership.
“We have thousands of people who work incredibly hard for us and are very committed and bought into the business, so providing them the opportunity to share in our growth and success is a wonderful thing and very consistent with our culture.”
On the wider reaction from staff to the float, Collins said: “There has been a lot of positivity. One of the first questions I have been asked is “what is going to change” and that’s a really easy one to answer – absolutely nothing. The culture within the business is one of the biggest drivers of our success so this move just serves to enhance it.”
Loungers IPO raised £83m, giving the company a market capitalisation of £185m and an enterprise value of £212.5m.
Collins said that while the valuation had come at the lower end of expectations, backers Lion, the management team and the founders were all pleased with the outcome.
He added: “We are all firm believers that the public markets is a very natural home for Loungers. The value is a reflection of the macro-economic environment and uncertainty around the UK consumer sector. As a result of that we scaled back the size of the fundraise. We have real confidence in the ongoing growth story and we’re happy to invest in it.”
A full interview with Collins will feature in this month’s print edition of MCA.