// CMO has announces plans to list on the junior AIM London Stock Exchange, valuing it at £95m
// First day of trading is expected to start on July 8 with the money raised to be used to reduce debts & invest in future growth.
// CMO, formerly Construction Materials Online, trades under various online fascias, including Total Tiles & Drainage Superstore
Online-only building materials retailer CMO has announced plans to list on the junior AIM London Stock Exchange, valuing the firm at £95 million.
The firm, formerly known as Construction Materials Online, is the latest in a long line of recent stock market listings – or initial public offerings (IPOs) – and bosses hope to raise £45 million from the flotation.
First day of trading is expected to start on July 8 with the money raised to be used to reduce debts and invest in future growth.
It comes four years after private equity group Key Capital Partners invested £8.65 million in 2017 and sees the firm retain a 26.8 per cent stake, which will be worth around £25.5 million.
“Today marks a significant landmark in CMO’s corporate journey and will provide the company with the platform to continue to deliver our growth ambition,” chief executive Dean Murray said.
He added: “CMO has an exciting opportunity ahead as we continue to capitalise on our first-mover advantage and digital platform to further increase market share as customers increasingly move online for their building materials requirements.
“We are particularly encouraged by the strong demand we have experienced from high calibre institutional investors, which is clear validation of CMO’s market opportunity and strong future growth potential.”
CMO trades under various online fascias, including Total Tiles and Drainage Superstore, and recorded revenues of £45 million in 2019 and a pre-tax loss of £2.2 million, according to its most recent accounts published on Companies House.
Bosses hope to cash in on the rise of online shopping during the Covid-19 pandemic and a boost in the construction sector, which has seen projects postponed during lockdowns now restarting.
with PA Wires