Applied Nutrition, a Liverpool-based manufacturer and wholesaler of sports nutrition products, is setting its sights on a £1bn flotation on the London Stock Exchange. 

Deutsche Numis is tipped to sponsor the initial public offering, according to a Sky News report quoting City sources.

The news comes as the London stock market continues to experience a drought in primary listings.

Just 23 IPOs took place on the London Stock Exchange in 2023, around half the number from the year before and the second lowest in almost three decades.

New funds raised were down by 36% on the previous year, and down 88% compared to 2021 and over 90% down on 2020.

The last time there were fewer IPOs in London was 1995 when the LSE records began and the AIM market was launched.

JD Sports Fashion PLC (LSE:JD.) is a partial owner of Applied Nutrition, having bought a 32% stake in 2021.

According to Companies House filings, Applied Nutrition turned over £61 million in the 2023 financial year ending 31 July, representing a 74% increase from 2022.

Cash generated from operations came to more than £10 million.

While this puts Applied Nutrition’s reported £1 billion valuation on a high backward-looking multiple, the business is growing rapidly and is expected to hit £100 million in revenues in the current financial year.

Peter Cowgill, the former executive chairman of JD Sports, previously sat on the board of Applied Nutrition but resigned in 2022.

Dominic Platt, the current JD finance chief, was appointed as a director of Applied Nutrition this week.