Furniture Retailer Made.com, Holders Seek $405 Million in IPO

(Bloomberg) -- Online furniture retailer Made.com Group Plc and its holders are seeking as much as 286 million pounds ($405 million) in an initial public offering in London, as millennials decorating their homes boost sales.

The company is looking to raise 100 million pounds from the offering, according to terms seen by Bloomberg Tuesday. Made.com will market shares at 200 pence to 265 pence apiece through June 15, with the new stock set to start trading June 16.

The company’s offering of trendy and affordable home furnishings and accessories have been a hit among housebound customers, looking to upgrade their decor and remote-work stations during the pandemic. Shares in listed peer Westwing AG have gone up more than sixfold over the past year.

Read More: Home-Decor IPOs Rush to Catch Last of Lockdown Boom: ECM Watch

Made also competes with Europe’s biggest furniture retailer, Ikea, but works directly with designers to serve a more high-end market, while the Swedish company is known for its simple and practical pieces. The U.K. retailer plans to use IPO proceeds to reduce the wait time between a customer placing an order and delivery, to fund growth in its existing markets and to expand its homeware range.

As economies across Europe reopen and consumers start to focus spending on outdoor activities, investors are questioning the longevity of lockdown-fueled gains for online retailers. Funds are increasingly turning their attention to businesses poised to benefit from the economic recovery.

Made has stressed that there are other long-term trends driving demand for its wares, including its millennial customer base entering their “core home formation years,” an increased focus on sustainability and the potential to consolidate a fragmented market.

The startup was co-founded in 2010 by Brent Hoberman, the creator of travel website lastminute.com. The company is led by Philippe Chainieux, who was previously the chief executive officer of online dating service company Meetic SAS.

JPMorgan Chase & Co. and Morgan Stanley are joint global coordinators for the IPO, along with co-lead manager Liberum Capital.

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