The Hut Group has begun trading on the London Stock Exchange with shares changing hands in early trading today at 25% above the price of the IPO, taking its value to £5.6bn.
The Manchester-based business, whose brands include Lookfantastic, Coggles, GlossyBox and ESPA began trading on the London Stock Exchange at 8am today and floated with an initial value of £4.5bn.
The flotation is one of the biggest listings of a UK firm since 2013 and will tap into surging investor appetite for online retailing amid the pandemic. The Hut Group had first announced plans to launch an IPO in late August.
THG chief executive Matthew Moulding said: “I am delighted that THG has received such strong support from some of the world’s largest investors, which means we have been able to achieve a highly successful offer of shares in the company.”
“The results of the offer are a clear validation of our business model, significant growth prospects, and recognition of the hard work and talent of all our colleagues.”
“Our flotation is the start of an exciting new phase in THG’s development and we look forward to sharing that journey with our new shareholders.”
In August, the retailer first appointed seven banks to help it with its IPO and with a £1 billion fundraising round.
For the first six months of 2020, THG saw a “strong growth” in revenues, which increased by 35.8% year on year to £676 million despite the impact of Coronavirus crisis.
The Hut Group (THG), founded in 2004 by entrepreneur Matthew Moulding, has rapidly expanded as shoppers increasingly turn online for health and lifestyle brands, with around 7,000 staff now employed at its Manchester HQ.
THG owns a variety of its own beauty brands – many of which it has acquired in recent years – including Illamasqua, Eyeko and MyProtein, but sells third-party brands through e-commerce sites it operates, such as Glossybox and Lookfantastic. It also operates e-commerce operations for third party brands, such as By Terry and Nuxe, through its THG Ingenuity division.