The Hut Group flotation imminent, say City sources
The Hut Group, the Manchester-based online retailer, is expected to announce plans to float this week, according to City sources.
It would value the business at £4.5bn, and could land co-founder Matthew Moulding a £700m reward.
Sky News reports that a long-standing share plan would pay Mr Moulding one of the biggest pay cheques in British corporate history if THG is valued at £7.25bn by December 2022.
Mr Moulding founded the business in 2004 with John Gallemore.
There has been persistent speculation that an IPO is in the offing in recent years.
If THG does signal it will proceed with a flotation, it would be the biggest on the stock market this year.
Sources say THG is eyeing September 16 for the commencement of trading in its shares.
It is believed that more than 500 employees “from the warehouse to the boardroom” have been given shares in the business, with one insider saying that, by floating, the company would have created more millionaires than any other in British corporate history.
In late July it was reported that THG had lined up seven banks to work on a flotation.
Citi, JP Morgan, Barclays, Goldman Sachs, HSBC, Jefferies and Numis had been tasked to advise on what could be the UK’s biggest initial public offering of 2020.
Sources claimed the banks had been hired with a view to a £1bn sale of new and existing shares.
It was said at the time that the hiring of such a large syndicate of banks indicates that THG is closer to a flotation than at any point in its 16-year history.
Early in June this year THG announced annual sales of more than £1bn, together with new finance facilities of €1bn.
Results for the year ended December 31, 2019, revealed a 24% jump in group sales to £1.140bn.
Gross profit increased by 22% to £511m, while EBITDA was up 22% to £111m.
