Online greeting card seller Moonpig Group has unveiled plans for an initial public offering (IPO) and floatation on the premium segment of the London Stock Exchange.
Announcing the intention to float on Tuesday morning, Moonpig said it is targeting a free float of at least 25% of its shares, saying the IPO is being considered to raise the profile of the group and provide it with a platform for “continued growth” and provide additional trading liquidity in the shares.
The company also reported that for the six months ended October 31, 2020 it achieved revenues of £155.9mln, up 135% year-on-year, adding that its business is also “highly cash generative” due to its “high margins, an attractive negative working capital profile and relatively low capital expenditure requirements”. The company also boasted a 12mln customer base and claimed to have a 60% chunk of the UK’s online greeting cards market.
“We are confident that Moonpig Group will continue to make gifting even more effortless for millions of people across the UK and internationally, and as the leaders of the accelerating shift to online now is the perfect time for us to bring the company to the public market”, chief executive Nickyl Raithatha said in a statement.
Moonpig’s chair, Kate Swann, added: “Moonpig Group combines strong and sustained growth with excellent cash generation, in a market which is underpenetrated and moving online. I have been impressed by the management team, their innovation, and by the customer insight provided by Moonpig Group’s data. The Board is confident that Moonpig Group is well positioned to capitalise on its first mover advantage in the online card market and continue its strong momentum in the gifting segment, benefit from the continued human need for connections, and cycle-resilient customer spend on gifts and cards.”
Moonpig’s IPO plans were initially reported last week as rumours swirled that it could be the first in a long line of expected flotations in 2021, achieving a valuation of as much as £1.5bn.
Other firms that have unveiled plans to float include iconic shoemaker Dr Martens, with owner Permira intended to sell a stake in the group.