shares hit new low despite 62 per cent leap in sales

Kasmira Jefford
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SHARES in fell briefly below their offer price yesterday for the first time since their market debut, despite the online fashion retailer reporting a jump in full-year revenues.

The Manchester-based company had its first day of trading on 14 March and saw shares open at 85p – well above the offer price of 50p.

However, its share price faltered yesterday, falling to a record low of 49p before closing just above the offer price at 53p, valuing the business at £572m.

Shares in ecommerce firms have had a volatile time of late following Asos’ warning of lower margins and wider industry concerns around tech valuations.

The decline came after Boohoo revealed a 62 per cent rise in net revenues to £109m in the year to 28 February, in line with expectations.

The fashion brand added that earnings before interest, taxes, depreciation and amortisation were expected to increase by over 200 per cent on the previous year’s £3.9m.

Boohoo followed the debuts on London’s Alternative Investment Market of Poundland and Pets at Home and raised £300m through its initial public offering.

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