Online greeting card and gift retailer MoonPig has submitted an intention to float on the UK stock market of around £1.2 billion. The company said Tuesday it is aiming to make its debut in February.
Demand for MoonPig’s products has skyrocketed during the pandemic. Leave lockdown isolated for birthdays and special occasions, convenient options for next-day delivery of cards, gifts and flowers provide much-needed alternatives, and the peak of the pandemic begins to unfold in March As a result, the transaction jumped 156%.
MoonPig has appointed HSBC Bank, Jefferies International and Numis Securities as co-book runners, with Citigroup Global Markets Limited and JPMorgan Securities as co-global coordinators before the float.
Announced details of the planned initial public offering, MoonPig, which has been owned by the private equity firm index since 2016, said it will float at least a quarter. US companies BlackRock and Dragonia Global Fund have already agreed to buy £130 million in shares, each with £80 million and £50 million committed respectively.
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MoonPig plans to publish its prospectus with details next week. It is set to be given stocks to 450 employees as well.
Among them is Chairman Kate Swan, former CEO of WH Smith, who is expected to earn £7 million from the float. MoonPig’s CEO Nickyl Raithatha is lined up for £11m, while finance director Andy Mackinnon will also win £2m.
Established as the UK’s largest online greeting card retailer with over 12 million customers, MoonPig managed to capitalize when its high street rivals were forced to close. The company delivered 46 million cards and 7 million gifts and flowers over the 12 months leading up to October 2020. It reports that it manages up to 300,000 orders per day. A third of that is located via the app.
MoonPig won £156 million in the six months leading up to the end of October, compared to £173 million the previous year.
CEO Raithatha welcomed news of the company’s proposed IPO.
“As a leader in a market that is undergoing an accelerated shift online, we are pleased to be able to bring MoonPig Group to the public market. Our data-powerful technology platform allows our customers to offer even more special moments for those who care. It’s easier to create.
