Oakley celebrates Time Out Group IPO

Investment company Oakley Capital was celebrating success with one of its investee companies on Thursday, announcing the successful completion of the initial public offering of publisher Time Out Group, raising gross proceeds of £90m.

The AIM-traded firm said it invested in Time Out to support its transformation from traditional print-based media to digital and mobile platforms.

“Since Oakley’s initial investment, Time Out has significantly grown and developed its digital media and ecommerce business, transitioned the magazines to a free print model in key geographies, consolidated the brand ownership by acquiring back the key licensee territories and acquired the Time Out food market in Lisbon, Portugal,” its board said in a statement.

It said Time Out now claims its largest audience in its 48 year history with an audience reach of around 111 million per month across all platforms, and a broad global network comprising owned and operations in 65 cities and 14 countries and brand licensees in another 42 cities in 25 countries.

“In the last two years, the group has invested significantly in development, operational and other expenses related to the group's growth prospects,” the board explained.

“As a result, the group reported operating losses of £8.4m and £18.5m for the financial years ended 31 December 2014 and 2015, respectively.

“The proceeds from the IPO after debt repayment and transaction costs will be used by the group to invest in sales and marketing, further development and growth of its digital media and ecommerce platform and in replicating the Time Out food markets concept in new cities,” it added.

As a result of the IPO, Oakley has transferred its co-investments in Time Out Markets and Flypay to the group, and its investment in Time Out has been converted to ordinary shares.

The result of that is Oakley’s direct exposure to the group is entirely via an equity stake, which at the IPO price will be valued at £47.2m and will represent 24.2% of the group’s issued share capital.

Additionally OCPE, which Oakley is a limited partner in with a 65.5% interest, holds an interest in Time Out Group valued at £68m, representing 34.9% of its issued share capital.

“This investment is another example of Oakley leveraging its entrepreneurial, digital and operational experience and expertise to fund and support a complex strategic transformation,” commented Oakley director Peter Dubens.

“Time Out's successful listing is a clear endorsement of the company's transformation over the past five years and its prospectus for value generation in the future.

“We are a committed shareholder in the business and we look forward to the company going from strength to strength under the experienced management led by Group CEO, Julio Bruno,” he added.