Young fashion retailer SuperGroup has given the green light to its stock market listing and confirmed that it expects to achieve an IPO valuation of £395m.

The group, which comprises the Superdry fashion brand and the Cult retail chain, said that shares would be priced at 500p each. The SuperGroup IPO, which is oversubscribed, will raise £120m after the deduction of costs.

Of that, £105m will enable the management team and stakeholders to realise their investment and the balance of £15m will accelerate the group’s growth plans.

The first retail sector float since Sports Direct in 2007, the market capitalisation would only be slightly below the originally mooted £400m, despite a jittery market. The retail offer will be opened to the public on Monday and close on March 22.

Founder Julian Dunkerton, who started the business from a market stall in 1985, said in a stock exchange announcement today: “We are delighted that the institutions are as excited as we are by the success and growth prospects for SuperGroup, as evidenced by the level of subscriptions we have received for the institutional offer. I am therefore delighted that we will now move to the next phase of our planned flotation, being the retail offer to the public. This offer will allow customers, friends, family, business partners and the general public an opportunity to invest alongside institutions and the board in the growth of SuperGroup.”

SuperGroup’s directors, employees and related investors will continue to hold about 68% of the company’s ordinary shares.

SuperGroup’s flotation follows the postponement of fast fashion retailer New Look’s IPO and abandonment of value retailer Matalan’s sale process due to turbulent market conditions.

However, appetite for SuperGroup has been strong because of growth prospects and its debt-free status. SuperGroup is set to float on March 24. 

Seymour Pierce is acting as sponsor and sole bookrunner to the company.