Made.com IPO Underway, Founders Aim For £ 1 Billion Valuation

  • Made.com Expected to Launch an Initial Public Offering (IPO) Soon
  • Founders hope IPO will raise £ 1bn on primary market
  • The company will float on the London Stock Exchange
  • Share price details have yet to be announced.

Made.com IPO: the basics

British online furniture retailer Made.com has confirmed plans to list the company on the London Stock Exchange in June, after weeks of rumors an IPO was in sight. Following a boom in online furniture shopping triggered by a pandemic, Made.com saw gross sales rise to £ 109.5million in the first quarter of 2021, a 63% year-over-year increase. The online store has also seen its active user base reach 1.2 million in the UK and Europe, making it one of the largest household goods retailers in the country.

It was evident earlier in the year that Made.com was planning an IPO, which the company ultimately confirmed in a press release on June 1. The retailer also said today it will attempt to raise £ 100million through the issuance of new shares, while existing shares held by staff will also be sold.

Made.com share price expectations

The Made.com share price has not yet been announced and no prospectus is currently available to potential shareholders. All we know at this point is that Made.com plans to launch on the LSE in June 2021. A detailed prospectus with share price expectations will likely be available in preparation for the IPO. .

We know gross sales for 2020 were £ 315million with net income of £ 247million, or 30% from the previous year. This may have been caused by customers looking to freshen up their homes in the face of the lockdown caused by Covid-19. With the business employing 650 people, the company recorded its adjusted profit before interest, taxes, depreciation and amortization (EBITDA) at a loss of £ 5.1million for 2020, down from $ 9.8million. British pounds displayed for 2019. From January 2021 to March 31, 2021, they envision gross sales of £ 110million, a 64% improvement over the previous year.

One thing potential investors can keep in mind ahead of launch will be the last major float on the LSE, Deliveroo (ROO.LSE). Billed as the largest London IPO in nearly a decade, Deliveroo’s share price fell almost immediately after the float, with the company losing £ 2 billion in value.

Made.com founder Brent Hoberman said he was convinced Made.com’s London debut would fare better than his previous float for Lastminute.com, in the hope of avoiding a “mountain flutter” Russian ”. He also noted that its strong sales growth is proof of a strong and sustainable business.

The fundamentals of Made.com at a glance

  • Co-founded in 2010 by British entrepreneur Brent Hoberman
  • Total 2020 sales were £ 315million, 30% more than in 2019
  • Retailer announced adjusted EBITDA loss of £ 5.1million for 2020
  • If a valuation of £ 1bn is reached, Made.com’s IPO will be the sixth-highest listing in London in 2021

Find out how to take a position on the Made.com IPO before and after the listing.

Learn more about IPOs


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