LONDON, March 7 British online fashion retailer
boohoo.com will list on London's AIM market next week with a
market capitalisation of
560 million pounds ($936 million) after tapping into current
investor appetite for internet retail stocks.
The Manchester, northern England, based firm, majority owned
by its founders, the Kamani family, said on Friday it had placed
600 million shares at 50 pence, raising 300 million pounds and
giving the implied market value for the company.
Boohoo's larger rival, ASOS, also listed on
London's junior market AIM, has a market capitalisation of 5.6
billion pounds - a value that would place it in the FTSE 100
index were it to shift to the main stock market.
About 55 percent of boohoo's enlarged issued share capital
would be freely tradable post flotation.
Boohoo designs, sources, markets and sells own brand
clothing, shoes and accessories through its website to a core
market of 16-24 year-old consumers in the UK and globally.
Its sales rose 70 percent to 91.9 million pounds in the 10
months to December 2013, while adjusted earnings before
interest, tax, depreciation and amortisation (EBITDA) grew 188
percent to 10.1 million pounds.
Of the placing proceeds 240 million pounds will be used to
repay convertible loan notes held by the company's existing
shareholders, while 50 million pounds will be used to accelerate
the firm's expansion and enhance working capital.
Following the listing the Kamanis' holding will fall from 82
percent to 38.5 percent, with joint chief executive Mahmud
Kamani owning 24.5 percent.
His fellow joint CEO Carol Kane will see her holding reduce
to 4.6 percent from 9.8 percent.
Trading in boohoo shares will start on March 14.
Its float follows last month's listing of AO World,
the online domestic appliances retailer, which saw a surge in
its share price above its offer level on debut.
Several other British retailers are seeking listings on the
back of the country's gradually improving economy.
Convenience store McColl's has already listed,
while Poundland and Pets at Home have set price
Fat Face, B&M and House of Fraser are amongst other store
groups expected to come to market.
Last month boohoo bolstered its board, recruiting Peter
Williams, a former non-executive director of ASOS, to become its