Patisserie Holdings, the parent company behind coffee and bakery chain Patisserie Valerie, has announced plans to proceed with an initial public offering.

The business, backed by private equity firm Risk Capital Partners, plans to raise £33m to fund expansion with over 250 potential new sites identified, and will list on the junior AIM market.

Additionally, the company will use the money raised to pay existing outstanding senior debt of £21.9m and shareholder loans of approximately £10.8m.

Patisserie Holdings runs 138 outlets under five brands, including Druckers, Philpotts, Baker & Spice and Flour Power City Bakery. 

Luke Johnson, executive chairman, said: “Patisserie Holdings has a leading position in an attractive market, built around five differentiated brands. The management team has an excellent track record in the sector and has grown the business from eight stores in 2006 to more than 130 stores today, delivering seven years of uninterrupted increases in revenue and EBITDA.”

Paul May, chief executive, added that with its favourable positioning across fragmented markets, Patisserie Holdings had additional opportunities for potentially attractive acquisitions of other, smaller branded groups.