Hostelworld will gain a market capitalisation of £176.8 million as it raises more than £125 million through a share offer.
The IPO will see the Dublin-based online hostel booking platform company listed in the UK and Irish stock exchanges.
The offer price has been set at 185p per share with 71.7 million shares being placed. Trading in the company’s shares us due to start on November 2.
Majority owner Hellman & Friedman will see its shareholding in the company reduce to under 20%.
Established in 1999, the company acquired Hostelbookers in 2013.
It now has a global database of more than 12,600 hostels and 21,000 other forms of budget accommodation and achieved adjusted earnings [EBITDA] of €10 million based on net revenue of €43.9 million in the half year to June.
Going forward, the company’s brand and marketing strategy will focus on digital channels, social channels and brand partnerships, CRM programme, and brand building.
“The group’s strategy is to continue to grow its customer base and, as part of that strategy, intends to increase its presence and promote its brand in key markets where it sees significant growth opportunities,” Hostelworld said.
“The group will actively seek to expand in those markets where the offline to online travel shift is still emerging and where there is a significant penetration opportunity for the hostels and budget accommodation product.”
Chief executive, Feargal Mooney, said: “We are delighted to have reached this milestone in Hostelworld’s development and welcome all new shareholders.
“The IPO will further raise our already strong brand awareness in our growing and worldwide marketplace, enhance the group’s profile with investors, business partners and customers and enable access, should it be required, to capital markets to support future growth.
“We look forward with confidence to our future as a public company.”