Made.com shares fall after £775m London IPO
Shares in Made.com fell in their debut this morning after the furniture retailer listed in a £775m London initial public offering.
The online furniture brand, which has enjoyed rapid sales growth during the pandemic, set its offer price at 200p per share.
This will give the company a market capitalisation of roughly £775m. It was previously reported that Made.com was seeking a valuation of as much as £1bn.
But shares slipped seven per cent at market open, marking the latest blockbuster debut in a busy year for stock market listings.
Shares were trading conditionally today, with full trading set to begin on Monday.
The listing will raise £100m through the issue of 50m new shares. Around 47m existing shares will also be sold by shareholders, taking the total offer size to £194m.
A further 14.5m shares will be made available through an over-allotment option, the company said.
Made.com was founded in 2010 by Lastminute.com mogul Brent Hoberman, alongside Ning Li, Chloe Macintosh and Julien Callede.
The float will mark a bumper payday for the quartet, whose stakes will be valued at up to £155m.
Chief executive Philippe Chainieux described the float as an “exciting milestone” for the retailer.
“A listing in London, where the business was founded, will enable us to accelerate our growth as we lead the development of the online furniture and homewares market as it moves online, both in the UK and internationally,” he said.
Made.com has grown rapidly in recent years, thanks in part to its popularity among millennials.
The site saw its active user base rise to 1.2m in the year to the end of the first quarter, as the pandemic helped drive up demand among online retailers.
It has also announced plans to double its London warehouse space to meet consumer demand for furniture and homewares.