Online greetings card firm Moonpig made a robust start to life as a listed company on Tuesday.
The group floated on London's main market after confirming the price of its initial public offering at 350p a share - the top end of its range. After conditional dealings kicked off on Tuesday morning, the company’s stock was soon trading as high as 440p per share under the ticker MOON.
Moonpig’s listing price valued the company at £1.2 billion. It placed £491.2 million of shares on the market - around 41% of the group - raising gross proceeds of £20 million.
The company, which saw revenue growth of 135% in the six months to October, is eyeing a spot in the FTSE 250 with the IPO.
J.P. Morgan and Citi were joint global coordinators and joint bookrunners on the offering - the second-biggest UK listing this year after Dr Martens’ bumper float valuation of nearly £4 billion last week - along with Numis, HSBC and Jefferies.
Group chief executive Nickyl Raithatha said: “Listing on the London Stock Exchange is an incredibly special milestone and will provide new opportunities for the business.
“As the leaders of a market undergoing an accelerating shift to online, now is the perfect time for us to bring the company to the public market, and we are excited about Moonpig’s prospects for the future.”
The Treasury is currently conducting a review of the UK’s listing rules. Moonpig’s welcome today will likely help alleviate concerns about London’s appeal as a place for digital-focused and tech companies to list.
Firms including Deliveroo are said to be finalising their plans to go public on the London market.
Stephen Kelly, Chair of Tech Nation, said: “The announcement today that Moonpig has listed on the London Stock Exchange is yet another sign that we are entering a golden year for UK tech.
"The IPO of a homegrown company demonstrates both the strength of talent in the UK and the appeal of the LSE as a location for companies looking to IPO.
“With a valuation of £1.2bn, Moonpig joins the UK’s growing cohort of tech unicorns, with seven created in 2020 alone. The UK now has more than twice as many unicorns as Germany and France. We can expect more announcements like this from UK companies this year as we see UK Tech come into its own, which has particular importance in a post-Brexit world.”