The family behind the Quiz clothing retail chain is to sell £90 million of shares when the company makes its debut on the London stock exchange.
Tarak Ramzan, chief executive, will be the largest beneficiary of the disposal and reduce his stake in the business from more than 33 per cent to about 20 per cent. His children, including Sheraz, the chief commercial officer, are also selling some of their shares with other members of the family.
Institutional investors such as Hargreave Hale, River and Mercantile, Schroders, Kames Capital and Blackrock are among those backing the flotation.
Mr Ramzan, 64, started in business after inheriting his father’s textiles manufacturing operation when he was a teenager. His father, Mohammad, arrived in Scotland from Pakistan in 1947 and began working as a door-to-door salesman. He went on to sell tights and groceries before moving into wholesale clothing and manufacturing, initially making tartan and duffel coats.
Mr Ramzan decided in 1993 to diversify into high street retail fashion after becoming concerned about how much manufacturing was moving overseas.
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Yesterday Quiz said that trading in its shares was expected to begin on Aim in London next Friday and will value the company at about £200 million.
It has come a long way from the original boutique on Victoria Road in the southside of Glasgow that sold women’s knitwear and denim. In 2009 part of the business collapsed into administration but Mr Ramzan bought back many of the stores in a pre-pack purchase.
Today the Quiz empire spans 19 countries and there are further international expansion plans. In Britain and Ireland it has 1,350 employees in 73 stores, 165 concessions, at its headquarters and its 180,000 sq ft distribution depot in Scotland’s largest city. It has carved a niche in fast fashion with ranges aimed at women aged between 18 and 35 and recently diversified into plus-size clothing and bridalwear. The business sources about half of its clothing from British manufacturers.
The stock market admission document confirms that Mr Ramzan and his family are offloading more than 51 million shares at 161p each. After expenses they will receive £89.8 million and retain control of more than 48 per cent of the company. The Ramzan family have agreed not to sell any further shares for at least 12 months.
The flotation will raise more than £10 million for expansion in Spain, Cyprus, central America and the United States as well as extending operations in the Middle East and Asia. Twenty new shops and the same number of concessions are planned for the UK over the next two years. Online sales are forecast to grow from 13 per cent of revenue to 35 per cent.