Boohoo.com shares rose 40 per cent in their stock market launch yesterday as investors queued up to buy shares in online pureplay retailers.
Boohoo ended the day worth £840 million after shares rose 40 per cent to 70 pence each. That is £280 million more than it was priced at ahead of the floatation.
The website was founded by joint chief executives Mahmud Kamani and Carol Kane who have both been made millionaires in the IPO (Initial Public Offer) after selling part of their stakes.
But their fortunes rose again yesterday as their remaining shares increased in value. The combined shareholdings of three members of the Kamani family account for the majority of the remaining 44 per cent of Boohoo still in private hands.
AO World, owner of white goods site AO.com, had a similarly impressive debut late last month when shares rose 33 per cent to 378 pence on the first day. The shares settled at 345 pence on Friday, the lowest price since the launch.
But that still values AO at £1.45 billion, well ahead of the £1.2 billion valuation it was given when it launched the stock market listing in February.
Friday's closing valuation of Boohoo.com means it is worth more than JD Sport (£747 million) and only marginally less than Ted Baker (£930 million) and Debenhams (£932 million).
Boohoo targets 16-24 year old women and was founded in 2006. Kamani's family business has previously supplied high street retailers such as Primark and New Look before he established Boohoo. His price tags ranges from around £5 and few are more than £30.
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