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Highlights
- BrewDog is preparing to launch its IPO on the London Stock Exchange this year.
- The company had raised £7.5 million in October last year through a fresh round of crowdfunding program called Equity for Punks.
The UK-based pub chain and craft beer maker BrewDog, founded in 2007 in Scotland, is preparing to launch its initial public offering (IPO) on the London Stock Exchange this year. The pandemic has derailed plans as the uncertainty has made it difficult to gauge the right timing and market conditions for a floatation.
The company had raised £7.5 million in October last year through a fresh round of crowdfunding. The transaction was supposed to be the last before its expected listing. But because of uncertain economic conditions, the IPO date has not been disclosed. This makes the potential IPO price for its murky. However, the shares cost £25 currently through EFP.
BrewDog and Equity Punks
The company expanded into bar trade in 2009 but was already making lagers and ales for online and retail sales. The company’s bar portfolio had since then expanded to 78 in 2018. It has gone on to build several hotels, which includes one in Ohio.
BrewDog’s has been converting customers and fans into investors to fund its business plans since 2009. These loyalists, known as Equity Punks, contributed to making a market disruptive model through BrewDog’s crowdfunding plan called Equity for Punks (EFP). The model allows fans to buy stocks in the company that would help it underwrite international expansion.
The mechanism has given the company a consistent stream of cash annually since its opening a decade back. This money is integral to the company’s funds. Equity punks are not just the heart and soul of the company but also helps in filling its wallet.
BrewDog’s financials
In the year till 31 December 2020, the company’s pre-tax profit was £1.1 million compared to a loss of £576,000 year before. The company’s founder James Watt said that it was the company’s biggest year-to-date profit, though the company incurred significant expenditure for its Dublin craft beer and Berlin brewing facility.
The company’s gross revenue too increased to £214.9 million from £171.6 million. Its online sales got boosted because of the hit on the hospitality sector due to closures. This helped the company to offset the losses made from its hotel and bar revenue because of the pandemic.
BrewDog’s worth
The company was founded by Martin Dickie and James Watt. According to its recent valuation, the company has been valued at $2 billion. Watt has a 24 per cent stake, which is worth approximately $480 million. Dickie’s 20 per cent share is valued at $400 million. However, the largest beer companies like Anheuser-Busch have a valuation of about $95 billion. Though the management has yet not given any firm date for the IPO, speculations are rife that the company could go for the floatation this year only, and then common investors will be able to trade in this craft beer and pub chain stocks on LSE.
