Applied Nutrition range

Applied Nutrition offers hundreds of products across a range of four brands

Applied Nutrition has revealed Asda owner Mohsin Issa is committed to the group’s upcoming London IPO, which will see the sports supplements brand valued at up to £400m.

The Merseyside-based business set a price range of 136p to 160p a share for the flotation on the main market of the London Stock Exchange.

It’s existing shareholders, included founder Thomas Ryder, will sell around 140 million shares in the offer, raising up to £220m in the process.

Applied Nutrition boasted that the IPO had the support of “four prominent and highly successful north west entrepreneurs”, including Mohsin Issa, who stepped back from running Asda last month as the supermarket took steps to turnaround its ailing performance. The four have committed a combined £25m cornerstone investment in the IPO, which is expected to take place later this month.

A valuation of £400m at the top of the price range would fall short of the £500m market cap figure circulated in the media in the run-up to the move being officially confirmed by the company, but will still result in a lucrative payday for Ryder, who launched Applied Nutrition in 2014 and remains the majority shareholder.

In a statement to the LSE this morning, the company directors said the float would support the group’s growth plans by increasing its public profile and brand awareness, as well helping attract top talent to the business and creating a liquid market in the shares.

Retail investors will also be able to participate in the float for a minimum investment of £250 by using the AJ Bell, Hargreaves Lansdown or Interactive Investor platforms.

Applied Nutrition has rapidly grown revenues to £86m – with its range of products sold in more than 80 countries around the world – and employs in excess of 200 employees.

The flotation is set to inject some much-needed life into London’s stagnant IPO market, which has struggled to attract new listings in the past couple of years.

Analysts at Peel Hunt said the float was “welcome sight”. “We are keen to see a return to growth companies listing on the UK market,” the firm added.

“Applied Nutrition has seen meteoric growth over the past three years, taking revenue from £22m in FY21 to £86m in FY24,” a note from Peel Hunt said.

“It runs an extremely lean operation, with marketing costs, distribution costs, and other admin costs all significantly below peers, due to its sales model focused on third-party distributors.”

Applied Nutrition has engaged Deutsche Numis as the sole sponsor, global co-ordinator and bookrunner for the float.