7th Feb 2014 09:52
LONDON (Alliance News) - Online domestic appliances retailer DRL Holdings Ltd said Friday that it will rename itself AO ahead of a stock market flotation in March that it expects to raise about GBP60 million in gross proceeds.
AO believes it is well positioned to benefit from further growth in the UK online market for major domestic appliances, and intends to expand its product range and services, as well as preparing for a potential expansion into Europe, initially in Germany.
The company, which claims it is the UK's leading online retailer of major domestic appliances, offering 4,000 products from over 30 brands, said the initial public offering will consist of new shares and an offer of existing shares to be sold by the selling shareholders.
Online sales of domestic appliances in the UK have grown sharply in recent years along with a broader expansion in online shopping. However, AO is taking on established domestic appliance retailers like John Lewis Partnership and Dixons Retail PLC, which have launched successful online businesses on top of their traditional stores.
The offer will provide the selling shareholders, which includes some of the company's directors, senior management and business angel investors, with a partial realisation of their investment in the company, it said. It said that following admission, the company and selling shareholders, excluding directors will be subject to a 180-day lock-up period, whilst the directors will be subject to a 360-day lock-up period.
AO said it is intended that an over-allotment option of up to 15% of the total offer size will be made available by the selling shareholders.
From the fiscal year ended March 31, 2011 to the end of March 2013, AO said revenue has increased at a compound annual growth rate of almost 30% to GBP275.5 million. Its earnings before interest, taxes, depreciation and amortisation has increased at a compound annual growth rate of 57% to GBP10.7 million, it said.
Jefferies International Ltd and JP Morgan Securities are acting as joint global co-ordinators, joint bookrunners and joint sponsors for the flotation, whilst Numis Securities is acting as Joint bookrunner and Rothschild is acting as financial adviser to the company.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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