// The Hut Group raises £1.88bn to begin IPO
// Market capitalisation reaches £5.4bn
// The online retailer will begin trading on the London Stock Exchange from 8am on Wednesday
The Hut Group has started trading on the London Stock Exchange after raising £1.88 billion to float, which has accelerated its market capitalisation to £5.4 billion.
The online retailer said it would begin trading on the London Stock Exchange from 8am today following the float, which marks the UK’s largest IPO since 2015.
The Hut Group had first revealed plans to launch an IPO in late August.
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“I am delighted that THG has received such strong support from some of the world’s largest investors, which means we have been able to achieve a highly successful offer of shares in the company,” chief executive Matthew Moulding said.
“The results of the offer are a clear validation of our business model, significant growth prospects, and recognition of the hard work and talent of all our colleagues.
“Our flotation is the start of an exciting new phase in THG’s development and we look forward to sharing that journey with our new shareholders.”
The Hut Group first drafted in seven banks to help it with its IPO and with a £1 billion fundraising round back in August.
During the first six months of 2020, the retailer saw a “strong growth” in revenues, which grew by 35.8 per cent year on year to £676 million despite the impact of Covid-19.