Leicester online retailer to float with value of £115m

Marks Electrical, the Leicester-based online electrical retailer, is set to float on AIM with a market capitalisation of £115m after completing its share placing.

The sale of the shares will net Mark Smithson, who founded the firm in 1987 from his Dad’s garage, some £25m. The firm has expanded into a nationwide online electricals retailer run from one site in Leicester, with a team of around 145 people, including its own delivery drivers and fleet of vehicles.

The placing of over 4.5 million new shares is set to raise around £2.6m for the company, which it will spend on more delivery vehicles and a move to larger premises.

Smithson said: “We have been thrilled with the strong support we have received from institutional investors during the IPO and are delighted to welcome them as shareholders. I am also very pleased that our hardworking staff also now have shares in our company, recognising their significant contribution to making the business what it is today. Becoming a publicly listed company marks the start of an exciting new chapter for Marks Electrical as we push on with our growth plans and I look forward to growing the business alongside the rest of the team in the years to come.”