26th Feb 2014 16:23
LONDON (Alliance News) - Online fashion retailer Boohoo.com has brought forward its intention to float to early- to mid-March, from late March to early April previously, in an initial public offering on AIM valuing the company at up to GBP500 million that will raise funds for its big expansion plans.
Boohoo.com, which will be taking on bigger rival ASOS PLC, is hoping to grow the business both in the UK and internationally.
It also joins the growing list of recent and upcoming IPO's in the retail sector, including online domestic retailer AO World PLC, valued at around GBP1.2 billion, and UK convenience store and newsagent chain McColl's Retail Group Ltd, with a market value of around GBP200 million. Pet products retailer Pets At Home Group PLC and discount retailer Poundland have also confirmed they intend to float.
Media have reported that a host of other retail businesses are set to float sometime this year, including discount retailer B&M, department store operator House of Fraser, phones retailer Phones4U, and fashion retailer Fat Face.
Boohoo.com, which sells own-branded mens and women's fashions, said net sales more than doubled to GBP67.3 million in the year to February 28, 2013, from GBP29.0 million the prior year. It said UK sales increased by 68% to GBP43.8 million, while overseas sales surged to a huge GBP23.5 million, from only GBP2.9 million a year earlier, as the number of active customers increased significantly.
Recent trading figures from Boohoo, including a Christmas trading update, will be included in the company's prospectus, which is expected to be released either at the end of this week, or early next week.
The company, which recently said former ASOS director Peter Williams would be joining its board as a non-executive chairman, said it has been investing in areas such as infrastructure and its systems to keep up with the surging demand for its products.
"New customers have continued to flock to boohoo.com during 2013 and active customers now total over 2 million more than double the number 12 months earlier," the company said in a trading statement in December.
The company will hope to emulate the success of ASOS, which is the biggest stock on AIM with a market capitalisation of GBP5.84 billion. That valuation would put ASOS in the FTSE 100 if it decided to move to the main market in London, but it is adamant it wants to stay on the junior market for new.
ASOS said retail sales rose 40% to GBP753.8 million for the year to August 31 2013, from GBP537.9 million a year earlier. Its full year pretax profit to GBP54.7 million, compared with GBP40.0 million a year earlier.
It also said in a more recent trading update that it saw sales growth of 38% for the first four months of its new financial year, with its international retail sales now growing at a faster pace than its UK division.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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