Gear4music goes for growth with Placing

19th May 2017

Latest AIM deal reinforces Walker Morris’ capital markets expertise

Walker Morris has advised Gear4music on its Placing by way of an accelerated book build process to raise £4.2 million to fund its continued organic growth and international expansion strategy.

Gear4music, the largest UK-based online retailer of musical instruments and music equipment, intends to issue up to 610,000 new ordinary shares. Shareholders will also place up to 839,000 existing ordinary shares in response to high levels of demand from institutional investors.

Since Gear4music’s IPO in June 2015, the Group has more than doubled its revenue, with turnover increasing from £24.2 million in the year ended 28 February 2015 to £56.1 million in the year ended 28 February 2017.

John Hamer, Head of Corporate at Walker Morris said:

“It is always a pleasure to see a long-standing client grow and succeed. We’ve had the pleasure of working with the Company for a number of years, having previously advised at the time of Key Capital Partners’ investment in 2012 and its Initial Public Offering in 2015. This latest placing is a positive move for the Group to secure the funding and investment it needs to capitalise on its growth opportunities.”

Gear4music’s Chief Executive Officer, Andrew Wass, said:

“We are delighted with Gear4music’s recent performance, however, there is much more for us to achieve given the growth opportunities in our markets. The business is well positioned to capitalise on those opportunities and the Placing proceeds will provide us with additional firepower to execute the various elements of our organic growth strategy.”

Panmure Gordon is acting as Nominated Adviser, Broker and Bookrunner for Gear4music.