An online market place has confirmed its intention to float on the London Stock Exchange’s secondary AIM market next month.
Cumbria-headquartered Fruugo enables retailers to generate sales to shoppers in up to 42 countries currently, operating in 28 languages and 31 currencies.
The company currently hosts approximately 1,400 retailers on its platform.
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In a statement, the business said the main aim of the IPO is to is to raise the funding and profile of the company to “fuel a significant increase” in the rate of growth of new retailers using Fruugo.
The IPO proceeds will be “principally deployed to increase the speed and automation of onboarding thousands of additional online retailers onto the Fruugo platform”, together with continued investment in the user experience for shoppers and CRM initiatives to increase operating performance.
The placing will consist of newly issued shares, as well as existing shares held by the company’s current shareholders.
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Admission to AIM is expected to occur in early October.
Dominic Allonby, executive chairman and co-founder, said: “Fruugo has delivered very strong growth and strategic progress in recent years and we are delighted to announce our intention to float, signifying an exciting new chapter in the Group’s long-term development.
“Fruugo’s mission is simple: to enable shoppers everywhere to buy from retailers anywhere, and to enable retailers to access international demand for their products that they wouldn’t otherwise be able to do.
“Fruugo’s proprietary technology and SEO expertise, in combination with the huge range of product categories available through its platform, means that Fruugo is able to continually tap into worldwide consumer demand for sought after products and categories. The business is fast-growing, asset light, and built for scale.
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“The IPO will enable the group to invest further in its technology, including developing the user experience and onboarding process, to continue to achieve its significant growth potential from adding new retailers to the platform.”
Panmure Gordon (UK) is acting as nominated adviser and sole broker in relation to the proposed placing and admission.
N.M. Rothschild & Sons is acting as financial adviser to Fruugo.
Ulverston-based Fruugo’s board of directors includes Mr Allonby, managing director Tony Preedy, finance director Guy Bagshaw, former Asda chief financial officer Rob McWilliam, senior Tech Nation executive Liz Scott, N M Rothschild director Andy Thomas and former N Brown CEO Alan White.