Global Fashion Group has announced its intention to conduct an initial public offering ahead of listing its shares on the Frankfurt Stock Exchange.
The fashion etailer said its planned offering would only include newly issued shares and would allow it to invest more in growth, as well as “general corporate purposes”.
It plans to raise around €300m through the IPO, the net proceeds of which it will invest in “the technology platform, customer acquisition, and fulfilment and delivery infrastructure, including automation”.
Co-chief executive officers Christoph Barchewitz and Patrick Schmidt said: “We are excited about this next step for GFG. It is still very early days for fashion and lifestyle ecommerce in our markets. Today, most of our markets have less ecommerce adoption than Europe had 10 years ago.
“As consumer behaviour migrates towards ecommerce, GFG’s well-known consumer platforms, local teams, and fashion-specific operational infrastructure put us at the forefront of this growth opportunity. An IPO will allow us to keep investing in our end-to-end customer proposition, further strengthening our position as the leading fashion and lifestyle destination in growth markets.”
The business, which operates four ecommerce sites in Asia Pacific, Latin America and the Commonwealth of Independent States (CIS) – including Russia and Ukraine – narrowed its full-year losses following a spike in sales at its most recent update.
The etailer said it had “significantly reduced” EBITDA losses to €49.8m (£43m) in the year to December 31, 2018.
Full-year revenues from its websites – The Iconic, Zalora, Drafiti and Lamoda – jumped 18.7% year on year to €1.15bn (£1bn), while net merchandise value spiked 22.5% to €1.45bn (£1.25bn).
No comments yet