2nd Feb 2021 10:04
(Alliance News) - Moonpig Group PLC shares began trading in London on Tuesday, with the online greeting card retailer sizing up inclusion in the FTSE 250 index.
Moonpig priced its initial public offering at 350 pence per share, issuing 5.7 million new shares, raising GBP20 million, with existing investors selling 134.6 million shares. It meant the total offer size was GBP491.2 million.
Immediately following admission, the company said it would have market capitalisation of around GBP1.2 billion.
On Tuesday morning in London, Moonpig shares shot up to 429.60p each, 23% higher than its IPO price, giving it a market value of around GBP1.47 billion. The company added that conditional dealings of its shares began on Tuesday morning, with unconditional dealings to kick off on Friday.
"Subject to admission and satisfying the appropriate criteria, the company may be eligible following completion of the offer for inclusion in the UK's FTSE 250 Index," the company said.
The IPO was led by Citigroup Global Markets Ltd and JP Morgan Securities PLC as joint global co-ordinators. HSBC Bank PLC, Jefferies International Ltd and Numis Securities Ltd were joint bookrunners.
Moonpig Chief Executive Officer Nickyl Raithatha added: "We are proud to be joining the main market of London Stock Exchange and I would like to thank everyone at the Group for their hard work. Listing on the London Stock Exchange is an incredibly special milestone and will provide new opportunities for the business. We are confident that Moonpig Group will continue to make gifting even more effortless for millions of people across the UK and internationally."
Moonpig has thrived while peers such Clintons and Paperchase have struggled due to lockdown measures forcing closures and emptying high streets across the UK.
"The IPO is being considered, among other reasons, to further raise the profile of the company, provide it with a platform for continued growth," the company said earlier in January.
The company recorded GBP173.1 million in revenue in the financial year that ended April 30, 2020. Underlying earnings before interest, tax, depreciation and amortisation were GBP44.4 million.
It operates in a GBP24 billion card-attached gifting market in the UK, Netherlands and Ireland, it estimates.
By Eric Cunha; [email protected]
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