Makers of the KiK and 88vape eliquid brands is set to become the first vape company to float on the stock market.
Manchester-based Supreme, which also sells vaping hardware, batteries and light bulbs, plans to float on AIM, London’s junior stock market in May.
Vape Business Expansion and Debt Payoff
The planned money raised will be used to expand the companies premises and pay off £5m of debt.
Supreme makes around 130,000 bottles a day and its turnover last year was around £70m. It currently supplies to businesses including Asda, Poundland, Booker, Costcutter and Nisa.
Chief Executive Sandy Chada inherited the business from his father and currently owns the entire company. He will sell off between 30% and 40% with reports claiming around £30 million will be raised.
Mr Chadra, who is a non-smoker and who doesn’t vape and told the Financial Times:
“Over the last two decades we have established Supreme as a leading manufacturer and distributor of batteries and lighting, and more recently vaping, demonstrating our ability to leverage our extensive distributor and customer relationships to drive growth. With a track record of growing revenues, achieving long-term profitability and strong cash generation, we remain well-placed to build upon this.”
Supreme is expected to have a market value of £130m to £150m when it floats in May.
Investing in vaping could be a great opportunity. The ecigarette market is a fast-growing industry with vapers in Britain taking it up faster than anywhere else in Europe. While some reports claim the industry has been slowed by regulation, in the UK vaping is still looked upon as a safer alternative than smoking. Here the rules are being approached in a more pragmatic way.
And Public Health England, who declared vaping 95% safer than smoking, want to see ecigarettes made available on the NHS.
There are currently around 3 million vapers in the UK.