Shares in Made.com fell 3 per cent on Wednesday after the company priced them at 200p in its initial public offering, giving the online furniture retailer a market capitalisation of £775m.
The listing follows the debuts in London of online greeting card group Moonpig and vintners Virgin Wines, which have accelerated sales thanks to stay-at-home consumers buying online during the coronavirus pandemic. Both those groups’ shares remain well ahead of their IPO prices.
Made.com sold 50m new shares in the IPO on Wednesday, raising £100m, while existing investors sold 46.9m shares. A further 14.5m shares could be made available as part of the overallotment option. If exercised, that would increase the number of shares to 111.5m and 29 per cent of the issued share capital.
The shares traded conditionally in London on Wednesday, while full dealings will begin on Monday.
The homewares group aims to quadruple annual sales to £1.2bn by the end of 2025. The company has said it plans to invest proceeds from the IPO in marketing and supply chain improvements aimed at reducing the time between customer orders being placed and goods being delivered.
“The IPO is an exciting milestone for Made,” said chief executive Philippe Chainieux. “A listing in London, where the business was founded, will enable us to accelerate our growth.”
Made.com generated £315m in sales last year. The group, founded by entrepreneurs Ning Li and Brent Hoberman in 2010, sells to about 1.2m active customers in the UK, Germany, Switzerland, Austria, France, Belgium, Spain and the Netherlands and plans to expand beyond Europe.