• Entertainment publisher to sell shares for digital expansion
  • Hit hard by print downturn, Time Out turns to food markets

Time Out Group Plc, the London-based nightlife guide whose print ads have waned, plans to raise 90 million pounds ($130.2 million) in an initial public stock offering to finance expansion of its e-commerce offerings and bring its hipster food courts to the world.

The company, known for its entertainment listings and restaurant reviews, plans to list on the London Stock Exchange’s AIM market for small companies, and use the funds to build its businesses online -- restaurant reservations and tickets to concerts and shows sold through its websites and mobile apps, according to a statement on Thursday.

Time Out magazine cover 2014.
Time Out magazine cover 2014.
Source: Time Out

The company also wants to expand a dining and entertainment concept, Time Out Market, that it pioneered in Lisbon, where it invites vendors to a market hall built in the 19th century and shares in revenue from sales of food and drinks. The company plans similar locations in London, New York, Berlin, Miami and Porto, Portugal, over the next five years, according to Chief Executive Officer Julio Bruno.

“I put on 10 pounds every time I go,” Bruno said in an interview. “This is a physical enhancement of what Time Out digital represents.”

Time Out plans to issue 60 million shares at 150 pence each. The company will have a market value of 195 million pounds. Trading is set to begin Tuesday.

After the stock sale, Oakley Capital Private Equity will own a 34.9 percent stake, while publicly traded Oakley Capital Investments Ltd. will own 24. 2 percent.

Tony Elliott, who founded Time Out in 1968 with 70 pounds, sold a stake in the publisher to Oakley Capital in 2010 after the company’s magazines were hit by the decline in print advertising. While ad and circulation revenue was flat last year, Time Out posted an operating loss of 18.5 million pounds on revenue of 28.5 million pounds last year.

Time Out said it raised 90 million pounds conditionally in advance of the share sale and expected net proceeds of 58 million pounds, after repayment of debt and costs related to the plan. Liberum Capital Ltd. is acting as bookrunner.

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