Time Out shares fell on the first day of stock market trading for the listings and city guides publisher.
The shares, sold to investors at 150p each, fell about 10% to 135p in a wider market down 1.3% on fears that Britain will vote to leave the EU.
Time Out makes its money from print and digital advertising and fees earned from online booking through its websites. It also wants to expand its food market business from Lisbon to other cities.
The company, founded in 1968 and owner of London’s main listings magazine, is a bet on the spending power of consumers in the UK and Europe, though it has a sizeable US operation. With polls showing support for a vote to leave the EU on the increase, investors may be nervous about the company’s prospects.
Time Out raised £90m before transaction costs last week by selling 60,000 shares to institutional investors, valuing the company at £195m. The money will be used for investment and to pay off debt. The shares were listed on London’s alternative investment market.
The lossmaking company has 111m users and generated revenue of £28.5m last year, up £1.6m on 2014. Its operating loss more than doubled to £18.5m from £8.4m as its private equity majority owners spent on extra products and improved technology.
Tony Elliott produced the first edition of Time Out while on summer holidays from Keele University in 1968. From counter-cultural roots it became the main lifestyle and listings magazine for London. It expanded into New York and other locations in the 1990s and published city guides.
Elliott sold a controlling stake in Time Out to buyout firm Oakley Capital in 2010 though he kept 10%.
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