The share price of Boohoo.com (LSE:BOO) jumped 60% to 85p during early trade this morning, as the online fashion retailer made its stock market debut.
The firm, founded in 2006, is listed on the Alternative Investment Market (AIM) and recorded sales of £92m in the 10 months leading to December last year.
At present the shares in boohoo.com are only available to institutional investors. The placing is intended to provide the business with the capital to expand internationally.
Additionally, £6.5m will go towards improving its Burnley warehouse, with improvements to infrastructure and IT systems also forthcoming.
The joint chief executives, Mahmud Kamani and Carol Kane, issued this statement:
“We view the support from investors as a strong endorsement of the company’s growth plans and we look forward to creating value for our new shareholders as we begin life as a public company.”
A number of companies have listed on the stock exchange so far this year, including the convenience chain McColl’s and the white goods retailer AO World.
Shares in AO have surged 25% leading to a debate as to whether its valuation has become too steep. By contrast, McColls has disappointed, and its shares are down 5%.
More retailers are expected to announce their intention to float, while Poundland and Pets at Home are the next in line, and their shares will cost 300p and 245p respectively.
