Virgin Wines plans £100 million AIM float  after selling 1 million cases in pandemic boom

Virgin Wines has revealed plans to float on London’s junior AIM market next month as its boss said the firm has a “clear” post-pandemic growth strategy. 

The company, which is one of the UK’s largest direct-to-consumer online wine retailers, saw a surge in revenues over the past year as Britons ordered wine to drink at home in greater numbers during the pandemic.

The company, which launched in 2000 and now has around 147,000 paying subscribers, delivered more than 1 million cases of wine in the year. It mostly acquires a wine-producer’s whole supply and provides their wines exclusively - a method that removes price comparisons on bottles. 

The company is now planning to list on or around March 2 in a flotation that is reportedly expected to value the group at around £100 million. 

Virgin Wines, which licenses the brand name from Richard Branson, has hired Liberum to see it through the IPO.

The company was previously owned by Direct Wines and in 2014 went through a private-equity backed management buyout by its current team, including chief executive and former Warehouse Wines founder, Jay Wright, and CFO Graeme Weir. Wright said:“We are delighted to announce our intention to list on AIM signifying an exciting new chapter in the Group’s long-term development.

“We have enjoyed strong, consistent growth recently resulting in the Group delivering more than one million cases of wine to consumers during 2020. 

“Underpinned by the strength of our customer proposition as well as the benefit of many positive consumer trends, we have a clear strategy to continue this growth over the coming years.”

The company said the addressable, off-trade market for wine specialists such as Virgin Wines was in 2020 estimated to be around £2.4 billion a year.

It comes after several large pandemic-fuelled online businesses seek or complete listings, including online card retailer Moonpig and Deliveroo.