Moonpig confirms £1.2bn IPO plans

Saleha Riaz
·2 min read
The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville
Moonpig, set to list in London, has seen a recent boost in sales during the coronavirus pandemic as it snatched market share from its high street rivals like Clintons and Paperchase. Photo: REUTERS/Toby Melville

Online greetings card retailer Moonpig Group confirmed it is going ahead with its £1.2bn ($1.6bn) IPO on the London Stock Exchange (LSE.L), amid an acceleration in online shopping as the coronavirus pandemic forces people to stay at home.

CEO Nickyl Raithatha said that “as leaders of a market undergoing an accelerating shift online, we're delighted to bring Moonpig Group to the public market.”

He added that the company has a strong track record, and a huge opportunity to grow.

Funds and accounts managed by BlackRock, and Dragoneer Global Fund II have entered into cornerstone agreements with Moonpig to subscribe for £80m and £50m of shares respectively.

The offer will be comprised of a secondary offer of existing shares to be sold by certain existing shareholders and a primary offer of new shares to be issued by the company.

READ MORE: London Stock Exchange looks to speed up IPO process

It is targeting a free float of at least 25% of its issued share capital at admission.

“It is intended that up to a further 10% of the total offer shares will be made available by certain existing shareholders pursuant to an over-allotment option,” the company said.

Citigroup (C) and JP Morgan (JPM) have been roped in as joint global coordinators while HSBC (HSBA.L), Jefferies International and Numis Securities will be joint bookrunners.

The company has seen a recent boost in sales during the coronavirus pandemic as it snatched market share from its high street rivals like Clintons and Paperchase.

READ MORE: Paperchase set to fall into administration as retail carnage continues

Moonpig has about 12 million customers and sends 45 million cards a year. In the year to April 2020, it made £44m worth of profit on the back of sales of £173m in sales.

The LSE is seeking to shorten the process for initial public offerings as part of a new review of its listing rules. UK regulators are looking into possible changes to the listings regime in a bid to attract more listings from innovative companies.

Earlier this week British bootmaker Dr Martens also confirmed it will IPO, floating on the LSE in February after more than 60 years in business.

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