The Hut Group began trading on the London Stock Exchange this morning, raising £1.88bn in the largest UK initial public offering (IPO) since 2015.
The Manchester-based online retail giant is valued at around £5.4bn following its stock market listing, which the firm said is the UK’s largest ever technology IPO.
The Hut Group, which owns online brands including Look Fantastic and My Protein, said the raise was a “clear validation” of its business model and growth prospects.
In a statement this morning the company said it would start trading on the London Stock Exchange at 8am today, with shares price at 500p per share.
CMC Markets analyst Michael Hewson said the shares opened higher at 608p, suggesting the float has been a “well received one if early demand is any guide”.
“Its retail brands aren’t its only unique selling point, the company also has a technology and operating platform called THG Ingenuity which is used by big blue chip corporate brands like Nestle, Procter and Gamble and Johnson and Johnson for their ecommerce operations,” Hewson said.
Markets.com chief market analyst Neil Wilson added: “As noted when the filing was lodged, after a considerable ramp in tech valuations this year – for example Ocado up 100 per cent in the last 12 months – this IPO looked like a well-timed move, at least on the part of the founder who is due a bumper £700m pay-out should all go well, whilst still remaining very much in control of the business.”
The firm has enjoyed rapid growth this year, with revenue rising 35.8 per cent to £676m.
The Hut Group founder and chief executive Matthew Moulding said this morning: “I am delighted that THG has received such strong support from some of the world’s largest investors, which means we have been able to achieve a highly successful offer of shares in the company.
“The results of the offer are a clear validation of our business model, significant growth prospects, and recognition of the hard work and talent of all our colleagues.
“Our flotation is the start of an exciting new phase in THG’s development and we look forward to sharing that journey with our new shareholders.”