Electra Partners has announced the successful initial public offering of its portfolio company Hollywood Bowl Group, the UK's largest ten-pin bowling operator.
Upon admission of its shares to the London Stock Exchange's Main Market on 21 September, Hollywood Bowl will have a market capitalisation of £240 million.
Based on the offer price, Electra Private Equity's equity and debt investments in Hollywood Bowl have a value of £217m, an uplift of £62m on the valuation at 31 March 2016 and equivalent to an increase in Electra's NAV of 126 pence per share.
On admission, Electra is expected to receive cash proceeds of £153m from the sale of its equity investment as well as the repayment of £22m of debt instruments issued by Hollywood Bowl.
In addition, Electra will hold approximately 18% of the issued ordinary share capital of Hollywood Bowl with a valuation at the offer price of £42m; these shares are subject to a six-month lock-up.
The total equity return for Electra is 3.1x in cash plus a further 0.8x in shares, totalling 3.9x and an IRR of over 90%.