Applied Nutrition eyes US$521.8M valuation in upcoming IPO

UK – Applied Nutrition, a UK-based sports nutrition company, has announced the pricing for its upcoming IPO, aiming for a maximum market capitalization of £400 million (US$523.2 million).

The company plans to issue approximately 137.4 million shares, with an indicative price range set between 136 pence and 160 pence.

In its recent filing with the London Stock Exchange, Applied Nutrition indicated that this pricing would yield an estimated market capitalization between £340 million and £400 million. 

The IPO shares will be offered by “certain existing shareholders,” with JD Sports holding a 32% stake since 2021. 

The company’s founder and CEO, Thomas Ryder, remains the majority shareholder. Notably, four successful North West entrepreneurs, including Mohsin Issa, have committed to a cornerstone investment totaling £25 million.

The funds raised from the IPO are intended to support the company’s growth initiatives, enhancing its public profile and brand awareness. 

The share offering will be available exclusively to UK investors, with applications closing on 23 October.

For the fiscal year ending 31 July 2024, Applied Nutrition reported revenue of £86.1 million, a notable increase from £60.7 million the previous year. 

The company’s adjusted EBITDA also saw growth, rising from £18.5 million to £25.9 million in the same timeframe.

Additionally, a recent study by Nutrition Integrated highlighted a surge in the popularity of clear protein powders across Europe, which have doubled in the last two years, increasing by 159% since January 2022. 

Nick Morgan, managing director of Nutrition Integrated, emphasized that this emerging segment presents significant opportunities for manufacturers and brands to diversify their offerings and reach a broader consumer base. 

In the UK alone, Amazon sales data indicated a 216% increase in consumer purchases of clear protein powders in 2023 compared to 2022.

Clear protein powders, which have a nutritional profile similar to traditional protein powders, benefit from advancements in protein technology that create a more refreshing taste and texture, akin to juice or water rather than milk. 

This innovation addresses consumer preferences, helping to overcome the historical challenges associated with protein shakes.

Currently, most clear protein powder products utilize whey protein (76%), while plant-based options make up 25%. 

Brands like MyProtein are leading in this segment, with expectations for clear whey to continue gaining popularity as manufacturers explore this emerging market. 

Morgan forecasts that clear protein powders could follow the trajectory of protein bars, moving into the mainstream as brands capitalize on consumer demand for healthier, functional products.

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