Just Eat Said to Price IPO at Top End for Value of $2.4 BillionRuth David
Just Eat Plc, an online retailer, plans to price its London initial public offering at the top end of an offered range on strong investor demand, according to two people with knowledge of the matter.
Investors who bid below the top end of a price range of 210 to 260 pence may not get shares, the people said, asking not to be named as the details aren’t public. At a price of 260 pence, Just Eat may have a market capitalization of as much as 1.47 billion pounds ($2.4 billion) on listing, according to terms of the sale seen by Bloomberg News. Trading is due to start on April 3.
Retailers including AO World Plc and Poundland Group Plc went public last quarter as investors bet on the sector amid a U.K. economic recovery. Boohoo.com Plc, an online fashion retailer, rose 40 percent on its first day of trading in March and is now valued at 615 million pounds. IPO volumes in London this year more than doubled from the same period in 2013 to about $8 billion, according to data compiled by Bloomberg.
Just Eat’s sale, which is scheduled to close tomorrow, may raise as much as 300 million pounds, terms showed. The company is selling new shares to raise 100 million pounds.
Just Eat had had revenue of 96.8 million pounds in 2013 and earnings before interest, taxes, depreciation and amortization of 14 million pounds, an increase of 61.9 percent and 518 percent respectively, compared with 2012. The retailer operates in 13 countries and the U.K. is its largest market.