Well known reviews and listings brand Time Out London is planning to float on AIM on 14 June, raising £90 million in the process.
The company will issue 60 million shares at 150p. Based on the issue price it should have a market cap of £195 million.
Time Out London provides a global distribution network, including magazines, online and mobile apps. It will use the capital to further monetise its platforms by focusing on digital advertising and e-commerce.
Revenue is generated primarily through commissions through online bookings and transactions, including theatre tickets and dining out deals. This revenue model has been extended to the US.
The company aims to replicate deals for different food markets in new cities, helping the expansion and development of advertising to allow businesses to target its growing audience.
In 2015, Time Out’s expansion in Lisbon, which involved converting the city’s main market hall into a food shop and restaurant hub, received 1.9 million visitors and achieved positive earnings before interest, tax, depreciation and amortisation (EBITDA) within 18 months of opening. The company plans to roll out into other cities and describes this as a scalable opportunity.
Time Out CEO Julio Bruno says he wants to enable users to find reviews and easily book tickets for a range of attractions on various platforms, in order to generate revenue from its audience.
He plans to continue expansion into the US and Portugal, while focusing on a ‘hyper local’ model of business by providing personalised and local information and events to a wider audience.
Time Out has an audience reach of 111 million people per month across all platforms, with a global network in 14 countries.
Over the last two years, the group has invested in development and operational expenses, resulting in an operating loss of £18.5 million for the year to 31 December 2015.
Oakley Capital Private Equity has invested in Time Out to support its transition from traditional print-based media to digital and mobile platforms, which are becoming more popular.
Time Out London will be admitted under the ticker TMO.