25th May 2021 10:07
(Alliance News) - Furniture retailer Made.com Ltd on Tuesday confirmed it is considering a potential London-listing, aiming to raise GBP100 million in the process.
London-based Made sells its sofas, arm chairs and other furniture in the UK, Germany, Switzerland, Austria, France, Belgium, Spain and the Netherlands through its eponymous website.
Made did not put a timestamp on its planned Main Market float, though it said it aims to raise GBP100 million in its initial public offering. Existing shareholders will sell stock too. It will be eligible for inclusion in FTSE indices.
"Any additional details in relation to the potential offer, together with any changes to corporate governance arrangements would be disclosed in a confirmed intention to float," Made said.
Helped by a boom in home improvement due to the Covid-19 pandemic, Made posted revenue growth of 17% in 2020 to GBP247.3 million. Its pretax loss narrowed to GBP14.2 million from GBP19.5 million in 2019.
In the first quarter of 2021, revenue climbed 42% annually to GBP82.4 million.
Citing data from Euromonitor, Made said the global furniture and homewares market is worth GBP504 billion, GBP151 billion of that is attributed to Europe.
Made sits in a "fragmented market", it said, with the top 10 companies in the sector offering less than 20% of the market's total revenue.
"The furniture and homeware market stands at an inflection point of e-commerce adoption, with significant further upside potential given the secular shift to online. The market is further bolstered by a number of consumer trends re-shaping the space: shifting demographics, increased focus on product sustainability, rise in remote working, and growing brand awareness driven by high social media engagement, among others," Made added.
On Sunday, the Financial Times said Made's potential IPO could value it at GBP1 billion. The FT cited "people briefed on the process".
The FT noted that the IPO for Made, which primarily sells online, would follow other successful debuts recently of e-retailers, such as Moonpig Group PLC, Virgin Wines UK PLC and musicMagpie PLC.
Made was co-founded by Brent Hoberman and Li Ning, the FT said, with Amadeus Capital Partners Ltd and Partech Partners also as shareholders.
By Eric Cunha; [email protected]
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