Hotel Chocolat Shares Surge On Market Debut

Shares (Berlin: DI6.BE - news) in Hotel Chocolat rose 28% on the company’s first day trading on the London Stock Exchange (Other OTC: LDNXF - news) , adding almost £50m to the retailer's value.

The high-end chocolatier launched shares on the exchange's junior market last week, at 148p each.

They jumped 26% in early trading this morning, to a high of 197p, valuing the business at more than £200m.

The share placing raised £55.5m which will be invested in manufacturing and in its website.

The company's co-founders, Angus Thirlwell and Peter Harris, who retain a 66.6% share, are now jointly worth £43.5m as a result of the listing.

CEO Mr Thirlwell said they were delighted to have received such strong demand from investors.

"We have clear plans to invest further in our British chocolate manufacturing operations, in new stores and our new digital offering," he said.

The Hotel Chocolat brand was created in 2003 and the group now runs 81 stores, a hotel in St Lucia and restaurants in London and Leeds.

Shares closed 28% ahead, with its market value £47m higher than at the opening price.