to be valued at £560m

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Online fashion retailer will have a market capitalisation of £560m when it lists on the Alternative Investment Market next week.

The firm, majority owned by its founders, the Kamani family, said today it had placed 600 million shares at 50 pence, raising £300m and giving the implied market value.

Boohoo 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.

Of the proceeds £240m will be used to repay convertible loan notes held by the company’s existing shareholders. It will use £50m to accelerate the firm’s expansion and enhance its working capital base.

Following the listing the board and the Kamani family will hold approximately 44 per cent of boohoo’s enlarged share capital.

Trading in boohoo shares will start on March 14.