Patisserie Holdings, the parent company behind coffee and bakery chain Patisserie Valerie, has been valued at £170m on its conditional admission to AIM. 

The company, which runs 138 outlets under five brands, including Druckers, Philpotts, Baker & Spice and Flour Power City Bakery, has conditionally raised £32.8m to repay outstanding senior debt and shareholder loans.

The selling shareholders will receive gross proceeds of £46.5m, lower than the predicted £55m.

At admission, the company will have 100m ordinary shares in issue, with a free float of 48.4%.

Conditional dealings in the ordinary shares commenced on the London Stock Exchange at 8am this morning (14 May 2014) under the ticker ‘CAKE’ and have already risen 7%, reaching 183p.

Admission and the commencement of unconditional dealings in the ordinary shares are expected to take place at 8am on 19 May 2014.

Following the conditional placing, Luke Johnson, executive chairman and the largest shareholder, will own 42.7% of the company. The remaining directors and members of senior management will own 5.9% of the company.

Johnson said: “Today’s announcement marks a key step in the development of the group. We have grown the business from eight stores to 138 today, and I’m delighted that our new investors have recognised the potential to roll out Patisserie Valerie further.

“We look forward to a strong future as a quoted company.”