[ad_1]
LONDON, June 16 (Reuters) – Made.com (MADE.L) opened 7% lower on its debut on the London stock exchange on Wednesday, as the online furniture retailer became the last company to fall off stock quotes on the first trading day in a volatile year.
Made.com has priced its IPO in London at 200 pence per share, the bottom of a previously announced price range, and valued at 775.3 million pounds ($1.09 billion).
But the stock opened 7% lower and fell 5.6% at 0920 GMT.
Some European companies have struggled to win their IPOs in recent weeks, with investors becoming increasingly selective. France’s Believe (BLV.PA) is among those who have struggled in the aftermarket after pricing at the lower end of a scaled-back range.
A source close to the transaction, who would not be named, said the market was extremely competitive, making size and liquidity very important.
Given Made’s relatively small size, major US and European hedge funds have stayed away, leaving the order book dominated by UK midcap investors, although the source said the order book was still strong and included cornerstone investors.
“A listing in London, where the company was founded, will allow us to accelerate our growth while leading the development of the online furniture and homeware market as it moves online, both in the UK and internationally,” Philippe Chainieux, CEO of Made, said in a statement.
In London, substantial IPOs from Deliveroo (ROO.L) and Alphawave (AWE.L) have both fallen on their stock market debuts and are trading well below their IPO price, although others such as Dr Martens (DOCS.L) have performed strongly.
Made.com raised around £100million through its London stock exchange, while shareholders sold a further £94million worth of shares in the deal.
JP Morgan and Morgan Stanley were the global coordinators of the deal.
($1 = 0.7089 pounds)
Reporting by Abhinav Ramnarayan; adaptation by Thyagaraju Adinarayan
Our standards: The Thomson Reuters Trust Principles.
[ad_2]
picture credit