Moonpig confirms stock market debutwritten by Bella Palmer
The online greetings card firm said last week that it was considering the move as it looks to expand and capitalise on the surge in demand for online cards amid the pandemic
Online greetings card firm Moonpig has confirmed it is going ahead with its stock market debut valuing the group at up to £1.2 billion.
The firm said at least 25 per cent of its share capital will be made available for trading in the initial public offering (IPO), which is set to take place next month.
Investment firms BlackRock and Dragoneer have already signed up for £130 million worth of shares in Moonpig when it lists, at £80 million and £50 million respectively.
Moonpig - backed by Exponent Private Equity Partners, which owns a 41.3 per cent stake - said last week that it was considering the move as it looks to expand and capitalise on the surge in demand for online cards and gifts amid the pandemic.
It comes amid a rush of IPOs as firms look to take advantage of stock market optimism over vaccines, with renowned footwear brand Dr Martens also revealing plans for a possible £3 billion flotation earlier this month.
Moonpig chief executive Nickyl Raithatha said: As leaders of a market undergoing an accelerating shift online, we're delighted to bring Moonpig Group to the public market.
Our data-powered technology platform makes it incredibly easy for our customers to create more special moments for the people they care about. As the market-leading platform, with a strong track record, and a huge opportunity to grow, we are confident about our decision to become a publicly traded business, Raithatha said.
Moonpig chairwoman and former WH Smith boss Kate Swann is helping oversee the listing as the company seeks to tap further into a cards and gifts market which is worth £24 billion across the UK, Netherlands and Ireland, and is rapidly switching online.
The firm said only around 10 per cent of card purchases were made online in 2019, which is forecast to double to 20 per cent by 2021.
Moonpig already has 12.2 million customers and sends 46 million cards a year but is trying to position itself as a technology business, using customer data and predictive technology.
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