Financial News

  • 16 March 2014, 21:30

Boohoo Shares Soar 50% On AIM Flotation

Online fashion retailer boohoo.com has seen its shares jump by more than 50% on its first day of trading on the stock market.

The company, listed on London's alternative investment market (AIM) exchange, is now valued at around 870m.

Its shares first started at 70% above the offer price of 50p each, before easing.

Boohoo.com is the latest retail business to eye flotations in Britain, amid a return of consumer confidence and a tilt towards online retailing.

More than 10% of all retail purchases are made online, according to the Office for National Statistics.

Last month online domestic appliances retailer AO saw a share surge and its larger fashion rival Asos has seen its shares climb since floating last year.

B&M and House of Fraser are also expected to come to market this year.

Shopping by mobile phones and tablets is seen as a key driver of online retailers' market success.

Manchester-based Boohoo is majority-owned by its Kamani family founders, has discovered a niche in the industry.

It designs, sources and sells own-brand clothing, accessories and shoes through its website to a core market between the ages of 16 and 24.

Online sales have also allowed it to move beyond a UK focus towards global markets.

Its sales soared 70% to 91.9m in the 10 months to December 2013, while pre-tax earnings shot up 188% to 10.1m

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