UK: Ocado seeking GBP1bn valuation
Ocado will use the proceeds to expand its existing warehouse and build a second
UK online retailer Ocado said today (6 July) it is aiming for a valuation of more than GBP1bn (US$1.52bn) when it floats on the London Stock Exchange this month.
The retailer announced its intention to seek a listing last month and has invited those who have spent over GBP300 from the start of the year to buy shares.
Ocado set out an indicative price range for the offers, which has been set at GBP2.00 to GBP2.75 per share, which is equivalent to a pre-IPO equity value of around GBP800m to GBP1.1bn.
The maximum number of shares to be included in the offers will be 257.7m, comprising up to 102.5m new shares to be issued by the company, raising net proceeds of around GBP200m, and the sale of up to 155.2m shares by Ocado shareholders and optionholders.
The net proceeds of the offers will be used to expand its existing warehouse and build a second.
The firm said it will also explore further growth opportunities by extending its product range further into non-grocery products and the possibility of replicating the business model overseas.
The listing is expected to earn Ocado a place in the FTSE 250 index.
The final share price for the IPO launch is set to be announced on 21 July, with trading expected to begin on 26 July.
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