Shares of Nightcap PLC (LON: NGHT) rallied 48.6% as investors noticed the new entrant into London’s AIM market and its unique business model of buying and growing drinks-led businesses.
Nightcap listed on the AIM on January 13, 2021, has seen its shares rally from 11p to today’s high of 31.8p as investors bid up its share price. The company raised £4 million during its IPO and announced that it was buying the London Cocktail Club for £5.7 million.
The company said it wants to capitalise on the growing popularity of premium bars in the UK. The market is currently in flux due to the many structural changes occasioned by the coronavirus pandemic lockdowns.
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During the IPO, Sarah Willingham, Nightcap’s CEO, said: “To have floated Nightcap during a national lockdown is testament to the strength of our extended team, our advisers and our brokers Allenby Capital, the London Cocktail Club shareholders and the welcome support of our new investors. They have all seen our vision for the future and our determination to help the hospitality sector shine once again. I couldn’t be prouder to be part of this great industry.”
Nightcap intends to take advantage of the premium bar and restaurant locations that are reasonably priced due to the coronavirus pandemic to expand the business model successfully applied by the Londo Cocktail Club.
The company also clarified that its executive team, which is also composed of London cocktail Club’s senior management, has vast experience establishing and running successful businesses within the hospitality industry, which they shall tap in their new venture.
Nightcap will be an exciting stock to watch this year.
Nightcap share price.
Nightcap shares exploded 48.6% to trade at 31.8p having risen from Friday’s closing price of 21.4p.