The Hut Group is now trading on the London Stock Exchange after securing a $7 billion IPO, the biggest London stock market debut by market cap since Royal Mail in 2013. Shares soared 30% in the company’s first day of trading.
WHO: The Hut Group was founded in 2004 by Chief Executive Matthew Moulding and CFO John Gallemore, retails more than 8,000 brands, and operates more than 160 localized web sites across 35 languages and 42 currencies. THG has become one of Europe’s largest online retailers of premium beauty brands. Other holdings include Eyeko, Illamasqua, ESPA, SkinStore, RY, Glossybox, Lookfantastic.com, and Grow Gorgeous, Ameliorate, Acheson & Acheson, Christophe Robin.
IN THEIR OWN WORDS: “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,” said Chief Executive Matthew Moulding.
- The Hut Group is now trading on the London Stock Exchange after securing a $7 billion IPO.
- The company’s net was £920 million ($1.2 billion) that will be used to pay down the company’s debt, which has risen sharply in recent years.
- Shareholders, led by founder Matthew Moulding and private equity group KKR, will share gross proceeds of £961 million ($1.24 billion).
- KKR sold its entire stake in the business.
- BlackRock, Henderson Global Investors, funds managed by Merian and the Qatar Investment Authority agreed to buy £565 million of the shares offered.
- Moulding will remain both Chairman and Chief Executive of the company.
- In 2019, THG saw revenues jump by 24.5% year-on-year to £1.1 billion, with adjusted earnings before tax and interest of £111.3 million. Growth for the six months to June 30 has accelerated recently as it saw revenues increase by 35.8% to £676 million.
- JPMorgan, Citi, Barclays, and Goldman Sachs acted as global coordinators on the flotation, while HSBC, Jefferies, and Numis were mandates as joint bookrunners.
Photo: via The Hut Group