Gear4Music considers options but rules out IPO

Fast-growing retailer Gear4Music is considering its future options, but has ruled out an initial public offering at this time, The Yorkshire Post can reveal.

Gear4Music founder Andrew Wass

The company, which is backed by private equity firm Key Capital Partners, had considered floating after doubling its size in recent years. It has grown from £10m turnover in 2012 and is said to be heading to £23m turnover this year.

Gear4Music founder Andrew Wass said: “We are not considering an IPO in the short term. Currently the situation in the market is not the best.”

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Mr Wass said the company had been “assessing options” with regards to its future.

“We’re a growing business, we’re private-equity backed,” he added.

“At some point there will be a transaction.”

It comes as UK bank Aldermore shelved its listing plans, citing difficult market conditions.

Several European firms have pulled listings in recent weeks due to tough market conditions, including the challenger bank.

The bank said it would not go through with a planned IPO “due to recent deterioration of global equity markets”.

The so-called challenger bank, founded in 2009 by former Barclays executive Philip Monks with backing from AnaCap and Morgan Stanley Alternative Investment Partners, had planned to list on Friday with a value of around £800m, after selling about £300m of shares.

“The bank was being sold on growth at a time that we’re seeing a flight to safety. It was the wrong stock at the wrong time,” said a person close to the deal.

The source added that books “didn’t get close” to being covered, and the valuation was regarded by some investors as too high.

The failure of Aldermore casts a shadow over the prospects of the Virgin Money IPO later this month. It will sell £150m of new shares and is expected to be valued at £1.5bn to £2bn.