East London-based Cake Box Holdings Limited is set to join AIM later this month, in a flotation valuing the egg-free cake maker at between £40mln and £50mln.
A stock exchange notice, filed today, revealed Cake Box plans to list on the junior market in “late June 2018”.
Plans to have 250 shops in the coming years
Rumours have been circulating for a couple of weeks that the company – founded and owned by cousins Sukh Chamdal and Pardip Dass – was in the process of going public.
Chamdal, 56, and Dass, 46, are expected to sell 40% of their shares and hold on to the remaining 60%.
The two family members opened their first Cake Box store in Upton Park, London back in 2008 and now have more than 90 franchises up and down the UK. The goal is to grow that number to 250 over the coming years.
The business, which generated sales of £12.8mln in the year through to March 31, was born out of a request from Chamdal’s daughter for a cake without eggs in it.
As a result, all of the firm’s cakes are egg-free and vegetarian-friendly, which customers can have a message iced onto whilst they wait.