Sat, 22nd Jun 2019
Trainline has just floated on the stock market, and in its first day of trading shares rose by around 18%, putting the value of the company at almost £2 billion, and bucking the trend which has seen most debuts be far weaker.
Shares in The Trainline were up by 18% after the company’s IPO on the London Stock Exchange. The company raised £110 million during its initial offering, and is likely to end up in the mid-cap FTSE 250 after the next reshuffle.
They opened at £3.50 per share, but ended the day at 414p per share, leaving chief Clare Gilmartin in a strong position. Gilmartin owned 2.8 percent of the business, but after the IPO she cashed in around £16 million worth of her shares. She still holds £35 million worth at the current price.
Two of the directors, Douglas McCallum and Shaun McCabe, earned £6.6 million and £4.9 million worth of shares from the float, making them into overnight multimillionaires.
Trainline was founded in 1999, as a consortium of major UK train companies. In 2006 it was sold to private equity buyers. There had been a plan to float the company in 2015, but it fell through when it was purchased by another private equity investor. Since then it has expanded internationally, and now sells tickets in 45 different countries. The company aims to continue its international expansion plans for both train and coach travel. Currently, the company’s mobile app accounts for the bulk of its traffic, and in spite of charging booking fees (which could be avoided by booking direct with the train operator) the company has many loyal customers.