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Supermarket supplier Bakkavor to go ahead with London IPO despite shelving it last week

Supermarket food supplier and the UK's largest producer of hummus, Bakkavor says it will now float in London..
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Bakkavor has performed a U-turn on float plans

Supermarket food supplier and the UK's largest producer of hummus, Bakkavor (LON:BAKK) says it will now float in London, reversing its position from exactly a week ago when it cited market volatility to put a lid on the IP0.

It has now set an offer price of 180p a share to raise around £100mln, giving the group a market cap of £1bn. That's a reduction of the previous price suggested of 195p a share.

Its shares are planned to begin trading on the LSE on Thursday, November 16.

"This IPO represents a significant milestone in the development of Bakkavor," said Agust Gudmundsson, chief executive of Bakkavor.

"Our passion for making the best tasting fresh prepared food, underpinned by our expertise and our focus on innovation, has made Bakkavor the clear leader in an attractive and fast-growing market.

"We are pleased that this has been recognised by the investor community and look forward to delivering further growth and success as a listed business."

Bakkavor specialises in ready-to-eat and ready-to-cook products and supplies big names like Tesco, Sainsbury’s, Marks & Spencer, and Waitrose.

The firm is floating around  25% of its capital, while its Icelandic  founders will retain a majority 75% stake.

Some in the City may not be so keen to see the return of brothers Lydur and Agust Gudmundsson, who grew to prominence over decade ago, when they started buying up foreign assets in a debt fuelled spending spree.

But there was a price to pay and Iceland hit economic crisis in 2008 when the three largest banks imploded.

The reinstatment of the Bakkavor IPO comes after a number of companies have pulled the plug on listings.

Last week TV and mobile infrastructure firm Arqiva postponed plans for a £6bn London listing, while business services provider TMF Group also ditched plans for an IPO in October, opting instead for a sale to a private equity firm.

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