Tailoring company Bagir Group Ltd. today filed to raise £21 million ($35 million) in an IPO on London’s Alternative Investment Market (AIM) on April 14. The company's executives are on a road show in the UK. The company is planning to hold the offering at a value of $50 million, before money, despite its negative equity.
All the proceeds from the IPO will be injected into Bagir to reduce its debt and expand operations in the UK and the US, and in Australia where it began operating last year.
Bagir designs and produces tailored high-quality suits for men and women. It specializes in producing suits for large retailers' house labels. Customers include Marks & Spencer, Brooks Brothers, John Lewis, and Arcadia. It has 1,000 employees at plants in China, Myanmar, Vietnam, and Egypt, while Israelis are responsible for development and marketing.
FIMI Opportunity Funds, controlled by CEO Ishay Davidi owns 50% of Bagir, and Zvika Barinboim owns 43% through SG Textile Ltd. The company's lender banks - Bank Leumi (TASE: LUMI) and Israel Discount Bank (TASE: DSCT) - own the rest. Bagir is Barinboim's second IPO on the AIM this year, following XLMedia plc (AIM: XLM).
Bagir reportedly posted $100 million revenue in 2013, 15% more than in 2012, and its earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $6 million from $3.6 million. If the IPO goes ahead, the company should swing to a positive shareholders' equity.
Published by Globes [online], Israel business news - www.globes-online.com - on March 31, 2014
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