Retailer Boohoo set for Q1 IPO
ONLINE fashion retailer Boohoo.com is set to embark on an IPO early in the new year, the company has confirmed.
Responding to reports that the process had been delayed amid investor concerns over valuation of up to £500m, a spokesman told TheBusinessDesk.com: “Test marketing with institutions has been very well received and an IPO is expected in Q1 2014.”
The Manchester company will hope to emulate the dramatic success of larger rival ASOS on the stock market. The London-based business floated on AIM at 20p in 2000 and is now worth more than £57 a share and valued at more than £4bn.
Founded in 2006 by chief executive Mahmud Kamani, Boohoo has its headquarters on Dale Street near Piccadilly, and also operates a warehouse in Burnley.
In the year to February 2012 profits rose 79% from £138,000 to £248,000 on sales of £29m, up 18%. Sales in the current year are expected to show impressive growth as the business benefits from high demand for affordable fashion.
Last year Boohoo added menswear to its collection.
The company is being advised on its IPO plans by Manchester-based Zeus, which listed Conviviality Retail – the company behind Bargain Booze – on AIM earlier this year. Zeus is also behind the planned listing of Yorkshire double glazing group Safestyle UK, announced today.
