Appliances website AO.com could be valued at more than £1 billion when it floats on the London Stock Exchange later this year.
The valuation of between £1 billion and £1.2 billion has been sounded out among investors this month in preparation for the plan, according to the Financial Times.
It is three to four times the initial £300 million valuation mooted in September when the firm first appointed bankers.
The valuation would put AO.com on a multiple of about three times annual sales compared to Asos - which has a proven international track record - with around five times.
The higher valuation reflects an increased appetite among investors for online retail firms and is likely to encourage more firms such as Boohoo.com to follow through with plans to list shares.
Boohoo has already developed a growing overseas presence and has put plans in place to strengthen international plans ahead of the IPO launch, expected in March.
Boohoo's founders Carol Kane and Mahmud Kamani plan to list the firm on Aim with a suggested price tag of up to £500 million.
For more on AO.com, see our Online Retail Stars of 2013 Report: AO.com.
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