bosses AT online fashion retailer boohoo.com were probably crying out with delight last night, after the company made a strong market debut.
Shares in boohoo.com rose by more than 50 per cent on its debut trade on the Alternative Investment Market yesterday, giving the firm a value of around £870m.
The shares opened 70 per cent above its 50p 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.
Last month, online domestic appliances retailer AO World saw its shares surge on its market debut. Boohoo, which 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 to 24-year-old consumers in the UK and globally.
Its sales rose 70 per cent to £91.9m in the 10 months to December 2013, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) grew 188 per cent to £10.1m.
Nick Boden, a partner at PricewaterhouseCoopers, who works across the North of England, was the reporting accountant on the boohoo initial public offering (IPO).
He said: “This successful IPO is a credit to the boohoo team and what they have created, which is an exciting business with enormous potential. We are proud to have been part of this deal.”