The flooring-to-beds retailer will use the proceeds to double its store estate
United Carpets Group has raised£7.5 million through an initial public offering in AIM on the London Stock Exchange. The retailer has placed ordinary shares on the market at 25p a share. Trading will begin on February 17, when the retailer will have a market capitalisation of about£20 million.
After expenses have been paid, United Carpets will use the£1.6 million proceeds to fund the expansion of its store franchise network. The retailer runs 40 store franchises at present and holds 11 corporate stores, six of which are earmarked for conversion to the franchise format.
United Carpets chief executive Paul Eyre said: 'Because of the strong demand from primarily institutional shareholders, the fundraising was significantly oversubscribed. We are now looking forward to joining AIM and delivering on our expansion programme to add about 50 franchised stores over the next three years.'
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