Shares in British online fashion retailer Boohoo. com jumped by more than 50 per cent in debut trade on London's AIM market today, giving the firm a value of around £870 million.
The shares opened 70 per cent above its 50 pence offer price at 85p, before settling at around 78p, as investors continued to show their appetite for internet retail stocks. Boohoo.com is one of a host of retail businesses to have listed or announced plans to do so this year, driven by recovering consumer confidence and fundamental changes wrought on the industry by e-commerce and shifting shopping habits.
Boohoo.com raised £300 million through its initial public offering, becoming the third UK retailer to list shares this week.
The company will use £50 million in proceeds to finance expansion and about £240 million will go to paying down loans.
The IPO “will support us in our continued ambition to provide high quality, fast fashion at affordable prices for our fashion-conscious customers around the world”, the company’s chief executive officers said in the statement.
Boohoo.com follows Pets at Home Group and Poundland Group, a discount retailer, in selling shares to the public. Pets at Home fell on its first day of trading while Poundland surged 23 per cent.(Reuters)
