The Hut Group confirms its intention to proceed with £4.5bn flotation

New Hut Group HQ

The Hut Group has confirmed its intention to float on the London Stock Exchange, valuing the business at £4.5bn.

It signalled its intention last week, and today the £1bn-turnover Manchester-based online retail giant said it expects admission of its shares to occur this month.

The float will comprise new shares issued, raising gross proceeds of around £920m, and an offer of existing shares to be sold by certain existing shareholders.

It said the directors believe the Offer will further support THG’s growth plans by increasing its public profile and brand awareness as well as providing a base of long-term shareholders while also providing potential liquidity opportunities for shareholders.

Funds and accounts managed by BlackRock, Henderson Global Investors, funds managed by Merian Global Investors (UK) Limited and Qatar Investment Authority, have each entered into cornerstone agreements with the company to subscribe for, subject to certain conditions, in aggregate, £565m of shares at the offer price, acting as cornerstone investors, consisting of a commitment of £300m from BlackRock, £100m from Janus Henderson, £90m from Merian and £75m from QIA.

The Offer will feature a fixed offer price equating to a £4.5bn pre-money equity value. Immediately following Admission, the company intends to have a free float of at least 20% of the company’s issued share capital.

THG has engaged Citigroup Global Markets, JP Morgan Securities, Barclays Bank and Goldman Sachs International as joint global co-ordinators, and HSBC Bank, Jefferies International and Numis Securities as joint bookrunners, in the event the offer proceeds.

NM Rothschild & Sons is acting as the sole financial adviser to the company.

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