Farfetch prices shares above indicated range ahead of today’s IPO

Farfetch Harrods

Luxury online fashion platform Farfetch priced its shares above the indicated range for its initial public offering today, signaling strong investor demand for the business.

The London-based company hopes to raise $885 million (£669.7 million) in its New York listing.

In the run-up to the initial public offering on Friday, the business and existing shareholders are selling 33.6 million and 10.6 million shares respectively at $20 each (£15), higher than the price range of $17-$19 (£12-£14) that had already been increased earlier in the week.

The pricing values the luxury technology company at $5.8 billion (£4.39 billion), signaling strong investor demand for the business.

That places Farfetch in a similar league to British fashion brands Asos and Burberry, who are valued at £6.3 billion and £7 billion each.

Founded in 2008, Farfetch generated sales of $481 million in the year to June 30, although it remains unprofitable, with losses before tax of $68.4 million (£51.76 million) on revenues of $267.5 million (£202.43 million) in the six months to June 30.

Click here to sign up to Retail Gazette‘s free daily email newsletter


Please enter your comment!
Please enter your name here