// The Hut Group officially confirms plans for a £4.5bn stock market listing
// The IPO would be London’s first major flotation since the coronavirus crisis struck
// It is also set to be the biggest stock market listing of a UK firm since 2013
The Hut Group has confirmed plans for a £4.5 billion stock market listing in what will be London’s first major flotation since the coronavirus crisis struck.
The online retail company, which owns the likes of MyProtein, Lookfantastic, Illamasqua and ESPA, said today that it would look to raise around £920 million through a share offering of around 20 per cent of its stock.
This values The Hut Group at £4.5 billion, and it is expected to start trading on the stock market later this month.
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The firm said BlackRock, Henderson Global Investors and funds managed by Merian Global Investors and the Qatar Investment Authority had agreed to buy £565 million of shares on offer.
The flotation is set to be the biggest listing of a UK firm since 2013 and will tap into surging investor appetite for online retailing amid the Covid-19 pandemic.
It will also be one of the first big floats in London after the pandemic halted the recovering initial public offering (IPO) market.
The Hut Group, founded in 2004, has rapidly expanded as shoppers increasingly turn online for health and lifestyle brands, with around 7000 staff now employed by the Manchester-based business.
The Hut Group owns a variety of its own cosmetic brands – many of which it has acquired in recent years – but also sells third-party brands through ecommerce sites it operates, such as Glossybox.
In 2019, the company saw revenues jump by 24.5 per cent year-on-year to £1.1 billion, with adjusted earnings before tax and interest of £111.3 million.
It told potential investors that its growth has accelerated recently as it saw revenues increase by 35.8 per cent to £676 million for the six months to June 30.
Bosses at the group said the IPO would boost the firm’s growth plans by increasing its public profile and brand awareness.
with PA Wires