Online retailer boohoo.com makes strong market debutFriday 14 March 2014 09.01
Shares in British online fashion retailer boohoo.com jumped by more than 50% in debut trade on London's AIM market today, giving the firm a value of around £870m.
The shares opened 70% above its 50 pence offer price at 85p, before settling at around 78p, as investors continued to show their appetite for internet retail stocks.
Boohoo.com is one of a host of retail businesses to have listed or announced plans to do so this year, driven by recovering consumer confidence and fundamental changes wrought on the industry by e-commerce and shifting shopping habits.
Last month online domestic appliances retailer AO World saw its shares surge on its market debut.
Boohoo's larger rival, ASOS, is a prime example of how highly investors rate such retailers well-positioned to cash in on shoppers' growing penchant for shopping via mobiles and tablets.
Boohoo, which is based in Manchester, and is majority-owned by its founders, the Kamani family, designs, sources, markets and sells own-brand clothing, shoes and accessories through its website to a core market of 16-24 year-old consumers in the UK and globally.
Its sales rose 70% to £91.9m in the 10 months to December 2013, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) grew 188% to £10.1m.