The Hut Group plans listing in boost to London IPO market

Credit: REUTERS/POOL New

E-commerce retailer The Hut Group Ltd said on Thursday it was planning an initial public offering in London, planning to raise at least 920 million pounds ($1.21 billion), as it looks to tap pandemic-accelerated investor appetite for the sector.

Adds details from statement, CEO quote

Aug 27 (Reuters) - E-commerce retailer The Hut Group Ltd said on Thursday it was planning an initial public offering in London, planning to raise at least 920 million pounds ($1.21 billion), as it looks to tap pandemic-accelerated investor appetite for the sector.

In potentially the first major IPO in London since the COVID-19 crisis started, the company plans to list at least 20% of its stock, using a fixed offer price that would give it a pre-listing valuation of around 4.5 billion pounds.

"THG has enjoyed strong growth since being founded in 2004, employing more than 7,000 people and establishing a track record of consistent delivery for our customers," THG Chief Executive and co-founder Matthew Moulding said.

THG, which sells a range of products including the latest Levi's collection, books and Lego through its websites, has benefited from a major pick-up in online shopping as people stayed away from physical shops during lockdowns.

The global health crisis largely halted new stock market listings earlier in the year when markets recorded sharp falls with investors shying away from risky assets as they assessed the virus's economic impact. Since then the IPO market has picked up markedly in Asia and the United States, but had remained dormant in Europe.

THG, the owner of skincare and beauty lines, such as ESPA, Illamasqua and lookfantastic, said it has seen strong revenue and earnings in the first half of 2020 on the back of a spike in online demand. It booked revenue of 1.1 billion pounds in 2019, up 24.5% year-on-year.

THG targets overall revenue growth of 20-25% over the medium term.

($1 = 0.7575 pounds)

(Reporting by Muvija M in Bengaluru Editing by Rachel Armstrong)

((muvija.m@tr.com; within UK: +44 20 7542 1810, outside UK: +91 80 6182 2698; Mobile: +91 90 4702 2289;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More