Sir Stelios plans easyHotel float as IPO records show signs of sinking

The company plans to raise £30 million by joining London’s junior AIM market, just half of the £60 million the chain had hoped to raise in the latest sign of investor fatigue

EasyJet founder Sir Stelios Haji-Ioannou is set for another punt at the stock markets next week with his latest budget venture, easyHotel.

The company plans to raise £30m by joining London’s junior AIM market on Monday, which it will use to expand its present 1,600-room network.

However, the total sum is just half of the £60m the chain had hoped to raise in the latest sign that investors are growing weary with initial public offerings.

The 47-year-old entrepreneur has a business empire ranging from gyms to estate agents but is best known for creating the FTSE 100 airline easyJet in 1995.

Although he still controls about 36 per cent of that company with his brother and sister, he has been embroiled in a number of disputes with its board in recent years over pay and an £8bn order for 135 new planes.

Next week’s flotation will value easyHotel at £50m and leave easyGroup – which Sir Stelios controls – still holding a 55.7 per cent stake in the business.

He said today that he planned to remain a “significant and supportive shareholder” in easyHotel “for a very long time”.

“This is a great business model which will continue to prosper as it grows and meets the demand of budget-conscious travellers around Europe and beyond,” Sir Stelios added. “The transparency and scrutiny of the public markets will also allow me to step back from the company and enable me to focus on continuing my diversification strategy into other business and philanthropic activities.”

EasyHotel will become the latest in a long line of companies to float in London this year, although some of the most recent businesses to come to market have disappointed on debut, such as over-50s group Saga, which now languishes below its 185p listing price – closing at 171.75p.

Earlier this week, Saga’s former sister company AA floated at 250p but closed at 237p ahead of its first day of unconditional trading on Thursday.

According to figures from Dealogic, there have been 37 initial public offerings in the UK during the second quarter of the year so far, raising $13.9bn (£8.1bn).

Another of these, TSB, fell 4 per cent to 285p on its first day of unconditional trading, still above its 260p float price. Lloyds Banking Group was forced to offload the business by the European Union for taking taxpayer funding during the financial crisis.

Lloyds ran into difficulties following its tie-up with HBOS in 2009, which was fast-tracked by the Labour government to prevent HBOS from collapsing. 

Paul Pester, the chief executive of TSB, said: “The journey to build TSB, with the aim of bringing more competition to UK banking and better banking for UK consumers, has brought us a long way.

“Today is another great milestone for us as shares in TSB Banking Group are admitted to trading on the London Stock Exchange. It is also the day when each of TSB’s employees receives shares in TSB Banking Group, making all of our people true partners in the business.”

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Treasury Assistant - Accounts Assistant - London, Old Street

£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Business Analyst - Financial Services - City, London

£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...

SThree: Trainee Recruitment Consultant

£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...

Day In a Page

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

How a costume drama became a Sunday night staple
Miliband promises no stamp duty for first-time buyers as he pushes Tories on housing

Miliband promises no stamp duty for first-time buyers

Labour leader pushes Tories on housing
Aviation history is littered with grand failures - from the the Bristol Brabazon to Concorde - but what went wrong with the SuperJumbo?

Aviation history is littered with grand failures

But what went wrong with the SuperJumbo?
Fear of Putin, Islamists and immigration is giving rise to a new generation of Soviet-style 'iron curtains' right across Europe

Fortress Europe?

Fear of Putin, Islamists and immigration is giving rise to a new generation of 'iron curtains'
Never mind what you're wearing, it's what you're reclining on

Never mind what you're wearing

It's what you're reclining on that matters
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband

Chuka Umunna: A virus of racism runs through Ukip

The shadow business secretary on the benefits of immigration, humility – and his leader Ed Miliband
Yemen crisis: This exotic war will soon become Europe's problem

Yemen's exotic war will soon affect Europe

Terrorism and boatloads of desperate migrants will be the outcome of the Saudi air campaign, says Patrick Cockburn
Marginal Streets project aims to document voters in the run-up to the General Election

Marginal Streets project documents voters

Independent photographers Joseph Fox and Orlando Gili are uploading two portraits of constituents to their website for each day of the campaign
Game of Thrones: Visit the real-life kingdom of Westeros to see where violent history ends and telly tourism begins

The real-life kingdom of Westeros

Is there something a little uncomfortable about Game of Thrones shooting in Northern Ireland?
How to survive a social-media mauling, by the tough women of Twitter

How to survive a Twitter mauling

Mary Beard, Caroline Criado-Perez, Louise Mensch, Bunny La Roche and Courtney Barrasford reveal how to trounce the trolls
Gallipoli centenary: At dawn, the young remember the young who perished in one of the First World War's bloodiest battles

At dawn, the young remember the young

A century ago, soldiers of the Empire – many no more than boys – spilt on to Gallipoli’s beaches. On this 100th Anzac Day, there are personal, poetic tributes to their sacrifice
Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves

Follow the money as never before

Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves, reports Rupert Cornwell
Samuel West interview: The actor and director on austerity, unionisation, and not mentioning his famous parents

Samuel West interview

The actor and director on austerity, unionisation, and not mentioning his famous parents
General Election 2015: Imagine if the leading political parties were fashion labels

Imagine if the leading political parties were fashion labels

Fashion editor, Alexander Fury, on what the leaders' appearances tell us about them
Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

The architect of the HeForShe movement and head of UN Women on the world's failure to combat domestic violence