UK-based Moonpig 491m ipogopinathbloomberg IPO stands for Initial Public Offering. It is a process in which a company’s shares are launched/offered to potential investors on a stock exchange for the very first time, thereby making the company ‘public’. This enables any individual or organisation to become shareholders, in companies that were previously privately owned.
From the simple act of card making, Moonpig, a UK based online greetings card retailer, has grown to be one of the country’s most successful start-ups. Announcing its intention to float on the London Stock Exchange on December 9th, the company is set to become the biggest British technology IPO since the flotation of logistics heavyweight, Just Eat, in 2014.
Key features of this IPO
One of the key features of the Moonpig IPO is the high valuation placed on the company; estimated to be around £491 million, once an expected share price of £3.80 is reached. This places Moonpig’s market value three times the amount of its value in 2017 when it was sold to private equity firm, Exponent.
Despite the global pandemic, Moonpig has continued to maintain a steady revenue growth with figures recorded for the first six months of 2020 posts a 7% increase year on year. Accordingly, the estimated valuation is based on the continued success of the company.
Benefits of this IPO
The benefits of this IPO can be seen in two ways: firstly, it provides Moonpig with a much-needed liquidity event, which will likely help it secure much needed finances for future investment; and secondly, it provides a good opportunity for investors too.
In fact, analysts have noted that the proposed share price is lower than the company’s private value, suggesting it’s an attractive opportunity for investors. Further, the return potential is significant due to broad tailwinds in the company’s favour, regardless of the current macroeconomic climate.
In summary, the Moonpig 491m ipogopinathbloomberg IPO is expected to be a success, proving to offer both the company and investors alike with multiple benefits.