John Roberts Takes £86 million From AO And Denies Float Was 'Over-Revved'

John Roberts, the founder of AO.com, pocketed £86 million from the float of the business yesterday and then instantly made back the money he took out as shares soared.

Roberts' 28.6 per cent stake was worth £455 million before trading began this morning after shares in the company rose by a third to £3.78 each yesterday.

The company was listed at £1.2 billion but is now worth £1.6 billion. The company, listed as AO World, has defended its popularity because of its UK and global expansion potential it does not have the legacy property concerns of businesses like Dixons.

It says its model can be more readily replicated overseas and plans to launch a business in Germany where it says the market is worth 6.6 billion.

Roberts told the Daily Telegraph: 'It's not a dotcom bubble, we did not 'over rev' this. I've been saying, even at £1.2 billion, this business is cheap.'

AO World, which sells white goods and large domestic appliances, also delivers on behalf of other retailers such as Boots and Next. It made a £8.7 million in its last financial year on sales of £275.5 million.

Dixons, with annual sales of £8.2 billion, has lobbied its own investors in turn with a report that argued it has grown its own internet sales rapidly. It claims its average rise of 47 per cent over the past four years has outpaced the 30 per cent growth at AO.

It also claimed prices were 3 per cent lower than its online rivals. Its UK market share of large online appliances is about the same at AO at 25 per cent.