16th Jun 2021 08:59
(Alliance News) - Online furniture retailer Made.com Group PLC's stock fell slightly as it began conditional trading on the London Main Market on Wednesday.
London-based Made sells its sofas, armchairs and other furniture in the UK, Germany, Switzerland, Austria, France, Belgium, Spain and the Netherlands through its eponymous website.
Made valued its initial public offering at 200p per share, which gave the company a GBP775.3 million market capitalisation on admission.
The stock was trading at 191.88 pence each in London on Wednesday morning, down 4.1% from its IPO price and valuing the company at around GBP743.9 million.
The offer comprised of 50.0 million new shares to be issued by the firm, raising GBP100 million, and 46.9 million existing shares, meaning a total offer size of GBP193.8 million. Made had 387.7 million shares on admission.
"A listing in London, where the business was founded, will enable us to accelerate our growth as we lead the development of the online furniture and homewares market as it moves online, both in the UK and internationally," said Chief Executive Philippe Chainieux.
Conditional dealings of the stock began on Wednesday, with unconditional trade beginning on Monday. Made expects to be eligible for inclusion in FTSE indices.
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 in May said the global furniture and homewares market is worth GBP504 billion, GBP151 billion of that is attributed to Europe.
Made at the time added that sits in a "fragmented" industry, 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.
By Eric Cunha; [email protected]
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