Stelios Haji-Ioannou, founder of Easyjet, is to list Easyhotel on the stock exchange as he plans a major expansion of the budget hotel chain.
In a statement, the group confirmed it will raise £30 million through an initial public offering (IPO) on London’s mid-range AIM market. This is half the £60 million the company had said it planned to achieve, when it announced an ‘intention to float’ Easyhotel in May this year.
Easyhotel will issue 37.5 million shares at a price of 80p each – valuing the company at £50 million. The company will sell 44.3 per cent of its shareholding, while holding on to 55.7 per cent.
Haji-Ioannou confirmed that the money raised will go towards expanding the brand and “pursuing the company's roll-out of owned hotels.”
Easyhotel currently owns 17 franchised hotels, two wholly-owned freehold hotels and one long leasehold development site.
"This is a great business model which will continue to prosper as it grows and meets the demand of budget-conscious travellers around Europe and beyond," said Haji-Ioannou. "The proceeds from the placing will be used to acquire and develop new hotel sites, enabling the Company to capitalise on the significant growth opportunities available in the 'super budget' hotel segment through the strength and international recognition of the 'easy' brand."
Haji-Ioannou added that he “anticipates” remaining a "significant and supportive shareholder for a very long time."
Formal trading in Easyhotel shares will begin on June 30.