MILAN — The Mysale Group, which operates flash sale sites in Australia, New Zealand, South East Asia and the United States, saw its shares fall to 1.82 pounds, or $3.08 at current exchange, around noon on Monday morning, its first day of trading on London’s AIM market.
Last Friday, the e-tailer fixed the share price of its initial public offering at 2.26 pounds, or $3.40, per ordinary share, giving it a market capitalization of around 340 million pounds, or $576.6 million. The company free floated a 41.2 percent stake.
However, a spokesman for the company said there had been “an inadvertent pricing in pounds rather than pence” on Monday. Therefore, he added, this “cannot be seen as a proper reflection on trade” for the day. Starting Tuesday, shares will be traded in British pence.
The 40 million pounds, or $67.8 million, that the company plans to raise from the float will be used for marketing initiatives and member acquisition when Mysale enters new markets, with an initial focus on the U.S. and the U.K., the firm said.
It will also go towards capital expenditure on the company’s warehouses and contribute to “opportunistic strategic acquisitions” and working capital to support growth.
As reported, Topshop owner Sir Philip Green’s family interests took a 25 percent stake in Mysale for 87.5 million Australian dollars, or $80.9 million, last month. Also in May, Mysale acquired the shuttered U.K. flash sale Web site Cocosa and plans to launch Mysale.co.uk in the next few weeks, using Cocosa’s 800,000-strong customer base.
Mysale’s flotation comes amid a slew of fashion and retail brands said to be preparing for IPOs this year. It also follows those of online fast fashion retailer Boohoo.com in March and Moncler SpA’s on the Milan Stock Exchange in December.