Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

Made.com shares fall 7% after completing London IPO

Published 06/16/2021, 03:10 AM
Updated 06/16/2021, 10:22 AM
© Reuters. FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/File Photo

By Abhinav Ramnarayan

LONDON (Reuters) -Made.com opened 7% lower on its London stock market debut on Wednesday, as the online furniture retailer became the latest company to fall on its first day of trading in a volatile year for stock market listings.

Made.com priced its London initial public offering (IPO) at 200 pence per share, the bottom of a previously announced price range, valuing it at up to 775.3 million pounds ($1.09 billion).

But shares opened 7% lower at the open and were down 5.6% at 0920 GMT.

Some European companies have struggled to get their IPOs over the line in recent weeks, with investors becoming increasingly selective. France's Believe is among those to have struggled in the aftermarket after a pricing at the bottom of a scaled-back range.

A source close to the transaction, who asked not to be named, said the market was extremely competitive, making size and liqudity very important.

Given Made's relatively small size, large U.S. and European hedge funds have stayed away, leaving the order book to be dominated by British mid-cap investors, although the source said the order book was still strong and included cornerstone investors.

"A listing in London, where the business was founded, will enable us to accelerate our growth as we lead the development of the online furniture and homewares market as it moves online, both in the UK and internationally," Philippe Chainieux, chief executive of Made, said in a statement.

In London, substantial IPOs from Deliveroo and Alphawave both tanked on their stock market debuts, and are trading well below their IPO price, though others such as Dr Martens have performed strongly.

Made.com raised around 100 million pounds through its London listing while its shareholders sold a further 94 million pounds of shares in the deal.

© Reuters. A woman views her mobile phone outside a Made.com showroom in London, Britain, June 16, 2021. REUTERS/Toby Melville

JP Morgan and Morgan Stanley (NYSE:MS) were the global coordinators on the deal.

($1 = 0.7089 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.