The Hut Group has begun trading on the London Stock Exchange this morning after its successful float raised £1.88bn, in turn pushing its market capitalisation to £5.4bn.
In a statement issued this morning, The Hut Group said it would begin trading on the London Stock Exchange from 8am following the float, which is the largest ever by a UK tech company and the UK’s largest IPO since 2015.
Based on the offer price, THG said market capitalisation for the business would be £5.4bn when it commences trading.
Chief executive Matthew Moulding said: “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.
“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 pureplay health and beauty retailer, which owns brands such as Glossybox and Myprotein, confirmed its intention to launch an IPO in late August.
It drafted in seven banks to help it with its IPO and with a £1bn fundraising round.
THG reported “strong growth” in revenues in the first six months of 2020, up 36% year on year to £676m, despite the impact of the coronavirus pandemic. It attributed the growth to “the non-discretionary nature” of its nutrition and beauty categories.
This sales growth came off the back of a strong 2019, when The Hut Group grew revenues 25% to £1.1bn.
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