Web Retailer Showroomprive Seeks $424 Million in Paris IPOby
Shares to be sold at up to 26.30 euros apiece until Oct. 29
Company eyes global push from crowded home market in France
Online retailer Showroomprive is seeking as much as 373 million euros ($424 million) in an initial public offering to expand beyond France as domestic competition from bigger rivals such as Vente-Privee.com SA and Amazon.com Inc. intensifies.
Shares will be sold at 19.50 euros to 26.30 euros apiece and the stock will trade on the Paris exchange, Showroomprive, based in a suburb near the French capital, said Monday in a statement. The IPO is set to value the company at as much as 870 million euros, co-Chief Executive Officer Thierry Petit said on a conference call.
“There’s a lot of room to grow, and we want to have the weapons for it,” Petit said. “The world’s strongest fashion brands are in France, in Italy. There’s no doubt about the attractiveness of Europe in our industry.”
French flash-sales sites, which offer goods at a discount for a limited period online, are targeting shoppers in neighboring countries to cope with a crowded market at home. Jacques-Antoine Granjon, the founder of Vente-Privee.com which pioneered online flash sales, said in October he wants to make a bigger push into Europe through acquisitions. Granjon said he wants to keep Vente-Privee private and doesn’t need to raise funds.
China’s Vipshop Holdings Ltd. has agreed to invest 30 million euros in Showroomprive at IPO price, the company said today.
The list of French technology startups that have gone to investors for cash in the past year is growing. Deezer SA, a Spotify Ltd. competitor in music streaming, is seeking at least 300 million euros in an IPO valuing the company at as much as 1.1 billion euros. BlaBlaCar and Sigfox are also raising financing.
Showroomprive said the IPO is set to raise 226 million euros to 298 million euros, or as much as 373 million euros if an overallotment option is exercised in full. Trading is expected to start Oct. 30 and the subscription period ends a day before.
Shares of European competitors have jumped so far this year: Germany’s Zalando SE gained 15 percent, and the U.K.’s Asos Plc is up 14 percent. Italy’s Yoox agreed in March to merge with Cie. Financiere Richemont SA’s Net-a-Porter to create the world’s largest online luxury retailer. Its shares have gained 57 percent in 2015, for a market valuation of 3.7 billion euros.