LONDON — British fashion e-tailer Boohoo.com said Friday it has fixed the share price of its initial public offering here at 50 pence, or 84 cents, a share. Six hundred million ordinary shares will be floated.
The firm expects to start trading on London’s AIM market at 8 a.m. on Friday, with a market capitalization of around 560 million pounds, or $936 million. Dollar figures are converted at current exchange.
The firm said it is raising about 300 million pounds, or $502 million, of which 50 million pounds, or $84 million, will be used to accelerate its expansion and “enhance its working capital base,” with 240 million pounds, or $401 million, used to repay convertible loan notes held by the company’s existing shareholders.
Boohoo said the initial placing of its shares ahead of the IPO had seen “strong demand from institutional investors.” After the firm is admitted to the stock market on Friday and following the completion of the placing, about 55 percent of Boohoo’s share capital will be in free float. At that point, the board will own about 30 percent of the firm and non-board members of the retailer’s founding Kamani family will own about 14 percent.
The retailer, which was founded in 2006 and carries trend-led, accessibly priced fashion — all under its own brand name — said it has 2.3 million active customers, whose core age range is between 16 and 24. Thirty-seven percent of Boohoo’s sales were international in the 10 months to December, and the firm launched a French-language site in October.
In the 10 months to December, Boohoo said sales rose 70 percent to 91.9 million pounds, or $153.7 million, and that adjusted earnings before interest, taxes, depreciation and amortization advanced to 10.1 million pounds, or $16.9 million, versus 3.5 million pounds, or $5.6 million, in the previous year.
Boohoo’s imminent flotation comes amid a slew of fashion and retail brands said to be preparing for IPOs this year. The Indian online retailer Koovs is set to make its debut on the AIM market on Monday, aiming to raise 22 million pounds, or $37 million, while the British department store chain House of Fraser is also said to be preparing to float, as is the British high street brand Fat Face. The Australian shopping mall group Westfield was also reported last month to be planning to list in the U.S. or London.
Ahead of its IPO, Boohoo revealed the appointment of a number of non-executive directors with retail expertise, including Peter Williams as non-executive chairman. Williams, who is also a non-executive director of Rightmove plc and senior independent director of Sportech plc, is a former chief executive officer of Selfridges and a former senior independent director of Asos plc.
Mahmud Kamani, joint ceo of Boohoo, said Friday: “The placing and admission to AIM marks a significant step for Boohoo as we invest in this exciting growth opportunity, underpinned by the rapidly growing online retail market.”
Carol Kane, Boohoo’s joint ceo, added: “We are confident that our competitive position and growing customer base mean we are well-placed to capitalize on the fast-growing online fashion retail market.”
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)