3rd Apr 2014 08:38
LONDON (Alliance News) - Shares in online takeaway service Just Eat PLC started unconditional dealings Thursday respectably above its offer price, after it became the latest online firm to list on London's main market.
Just Eat shares were quoted at 285 pence per share Thursday, 9.6% above its IPO price of 260p.
Just Eat raised GBP360.1 million via an initial public offering of 138.5 million new and existing shares, 24.6% of the company's entire share capital, giving it a market capitalisation at the IPO price of GBP1.47 billion.
It said that it will receive GBP100 million of the gross proceeds from the offer, with the remainder going to selling shareholders, including SM Trust, Index Ventures, Vitruvian Partners, Redpoint Ventures, Greylock Partners, as well as some management and employees.
The firm said that if an over-allotment option is exercised, the total IPO value would rise to GBP387.1 million, being 26.4% of the company. It said Goldman Sachs, as the stabilising manager, has been granted the over-allotment option by the major selling shareholders.
The online takeaway service launched its website in 2001, and now operates in 13 markets, including the UK, Denmark, France, Canada, Ireland and Spain. It is hoping to use the proceeds from the flotation to capitalise on these market positions, develop in less mature markets, expand into new territories and fund any complementary acquisitions.
Just Eat said revenues and earnings growth has been mainly through organic growth, but also via selected acquisitions.
In 2013, Just East said it generated revenues of GBP96.8 million and underlying earnings before interest, taxes, depreciation and amortisation of GBP14.1 million. It said orders in 2013 increased by 59% to 40.2 million, from 25.3 million in 2012, while average revenue per order grew by 5.5% during the year to GBP2.11.
Last month, the company said it had appointed British Sky Broadcasting Group PLC's Chief Financial Officer Andrew Griffith and former Sainsbury's Director Gwyn Burr as independent non-executive directors.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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