- In mainland Europe including France and Spain. It plans to launch in further territories. Made.com announces confirmation of intention to float on the London Stock Exchange this month
- It intends to raise GBP 100 millionm
in an IPO which will see some existing investors sell shares
- The final offer price regarding the IPO would be determined following a book-building process
By guest author Elias Jahshan from Retail Gazette
Made.com has confirmed its intention to float on the London Stock Exchange this month and unveiled certain details of the IPO.
The London-headquartered online-only furniture retailer, which is yet to set a price for the float, will join the main market for listed securities in a move that could value it at GBP 1 billion.
The business intends to raise GBP 100 million in an IPO which will see some existing investors sell shares.
According toThe Guardian, around 600 staff will be able to sell shares worth more than five per cent of the company, or GBP 50 million.
The news comes after an announcement by Made.com on May 25 regarding the publication of a registration document, which at the time indicated it was going ahead with IPO plans.
Earlier this year the retailer had appointed JP Morgan, Morgan Stanley and Liberum to draw up the plans.
The retailer said the final offer price regarding the IPO would be determined following a book-building process, with admission currently expected to occur later this month.
“I am pleased to announce our confirmed intention to list here in London, where Made was born,” chief executive Philippe Chainieux said.
“Over the last 11 years, Made has been revolutionising the home and living sector by providing our customers across Europe with a curated range of high-quality, responsibly made, affordable products, underpinned by exclusive designs.
“The business is fast growing, with a proven brand and customer proposition that travels well. We are excited to embark on our next chapter as we act on the huge opportunity for growth and deliver on our vision to become the leading home-lifestyle destination in Europe for the digital native.”
Immediately following its admission on the stock market, Made.com expects that it would have a free float of at least 25 % its issued share capital and that it would be eligible for inclusion in the FTSE United Kingdom indices.
In addition, it is expected that shares representing up to a further 15 % of IPO would be made available by certain existing shareholders pursuant to an over-allotment option.
The money raised from the IPO would also be used to invest in growth in Made.com’s existing markets, as well as improve service, scale its homeware range, and increase working capital flexibility.
Made.com joins a fast-growing list of big-name retailers that recently announced plans to or have gone ahead and launched on the stock market after enjoying success during the Covid-19 pandemic.
These include The Hut Group, Moonpig, Dr Martens, In The Style, Made.com, The Very Group, MyTheresa, Poundland parent company Pepco, and most recently, Hotter Shoes.
Made.com recently revealed it had achieved 36 per cent gross sales compound annual growth rate over the last five years.
In the year to December 31, 2020, the retailer reported an adjusted EBITDA loss of GBP5.1 million despite recording the 30 % sales growth of GBP 315 million.
It has expanded its product offering to include homewares and lifestyle, with more categories in the pipeline.
As well as the flagship UK site, Made.com operates in seven markets i