The Hut Group (THG), the fast-growing online beauty retailer and technology firm, began trading on the London Stock Exchange today with its shares changing hands at 25% above the price of the IPO, taking its value to £5.6bn.
The Manchester-based business, that retails its own beauty and nutrition brands such as Myprotein and Lookfantastic, plus over 1,000 third party brands via its proprietary technology platform, floated with an offer price of 500p per share that valued it at £4.5bn.
Its stock market debut has netted the company £920m while existing shareholders led by the group’s founder and CEO, Matthew Moulding, will share gross proceeds of £961m.
“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,” said Moulding.
“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.”
THG has expanded rapidly since it was established 16 years ago. In the year to 31 December 2019, it reported a 24% jump in its annual sales to £1.14bn, boosted by acquisitions and good performance of its various brands. EBITDA climbed 22% to £111m. Sales in the first six month of this year climbed 35.8% to £676m, despite the impact of the coronavirus outbreak.
If the business continues to perform well, Moulding is set for £700m windfall. This is contingent on him taking the company’s valuation to £7.25bn by the end of 2022.
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