Online Appliances Seller AO World Surges on London Trading Debut

AO World Plc, a U.K. online appliances seller, surged on its first day of trading in London as investors gave a positive reception to the latest U.K. retailer to join the stock market. The shares traded as high as 409 pence in London, 44 percent above the 285 pence initial public offer price. They were at 408 pence as of 8:42 a.m., giving the company a market value of about 1.6 billion pounds ($2.7 billion). AO, which had 24 percent of the U.K. online market for domestic appliances in 2012, is among retailers that have announced plans to sell shares this year as investors return to the market on the strength of an economic recovery. IPOs in London raised about $19 billion last year, about double the total for 2012, according to data compiled by Bloomberg. “I am delighted that our initial public offering has been so well received by investors,” Chief Executive Officer John Roberts said in a statement today. “They have understood our business model and our potential.” The IPO raised net proceeds of about 349 million pounds for existing shareholders, the company said. AO World will receive 40.9 million pounds of new funds from selling new stock, after paying fees and expenses of 19.1 million pounds. For the year ended March 2013, the company reported a 32 percent increase in revenue to 275.5 million pounds and earnings before interest, tax, depreciation and amortization of 10.7 million pounds, according to a statement. JPMorgan Chase & Co., Jefferies Group Plc and Numis Securities Ltd. managed the sale and Rothschild acted as financial adviser, according to the listing announcement. Source :  http://www.bloomberg.com/news/2014-02-26/online-appliances-seller-ao-world-valued-at-2-billion-in-ipo.html