Blackburn's Mohsin Issa is among the prominent entrepreneurs who has committed to invest a combined £25m as a cornerstone investor in Applied Nutrition.

The sports health business is targeting a valuation of up to £400 million in its stock market float later this month.

The planned initial public offering (IPO) will provide a boost to the London Stock Exchange, which has witnessed a dearth of new listings over the past two years.

The Liverpool-based company, which is backed by sportswear giant JD Sports, is set to debut on the exchange’s main market later this month.

Applied Nutrition said its shares will have a price range of between 136p and 160p per share for the IPO.

As a result, the company is expected to be admitted with a market valuation of between £340 million and £400 million.

The offer will comprise up to 137.4 million shares, to be sold by certain existing shareholders in the company.

The share offer will therefore raise up to £220 million for the firm and investors.

It said a number of prominent entrepreneurs from the North West had committed to invest a combined £25m as cornerstone investors, including the billionaire Blackburn businessman Mohsin Issa, who founded the EG Group alongside his brother Zuber.

The decade-old business mainly operates by selling its products to other businesses, including retailers, grocers, gyms and sports clubs, targeting consumers from professional athletes to people wanting to lose weight.

JD Sports acquired 32 per cent of the group’s shares in 2021 from founder and chief executive Thomas Ryder.

Applied Nutrition recently reported a pre-tax profit of £24 million for the year to the end of July, compared with £18 million the prior year.

Underlying earnings jumped 41 per cent to £26 million in the year to July 31 on sales up 42 per cent to £86.2 million.