LONDON — Boohoo.com, the online fast fashion retailer, saw its shares rocket 70 percent to a high of 0.85 pounds, or $1.41, on Friday morning, its first day of trading on London’s AIM market.
The stock fell back to 0.77 pounds, or $1.28, at 11:30 am CET, but that was still 54 percent higher than its initial price, and despite a jittery market due to the crisis in Crimea.
Last Friday, the British fashion e-tailer fixed the share price of its initial public offering here at 50 pence, or 83 cents, a share, with six hundred million ordinary shares floated. Dollar figures are converted at current exchange.
The firm said it is raising about 300 million pounds, or $500 million, of which 50 million pounds, or $83 million, will be used to accelerate its expansion and “enhance its working capital base,” with 240 million pounds, or $400 million, used to repay convertible loan notes held by the company’s existing shareholders.
The retailer was founded in 2006 and carries trend-led, accessibly priced fashion — all under its own brand name. The core age range is between 16 and 24.
Boohoo’s flotation comes amid a slew of fashion and retail brands said to be preparing for IPOs this year.