Boohoo Shares Soar 50% On AIM Flotation

Written By Unknown on Jumat, 14 Maret 2014 | 18.57

Online fashion retailer boohoo.com has seen its shares jump by more than 50% on its first day of trading on the stock market.

The company, listed on London's alternative investment market (AIM) exchange, is now valued at around £870m.

Its shares first started at 70% above the offer price of 50p each, before easing.

Boohoo.com is the latest retail business to eye flotations in Britain, amid a return of consumer confidence and a tilt towards online retailing.

More than 10% of all retail purchases are made online, according to the Office for National Statistics.

Last month online domestic appliances retailer AO saw a share surge and its larger fashion rival Asos has seen its shares climb since floating last year.

B&M and House of Fraser are also expected to come to market this year.

Shopping by mobile phones and tablets is seen as a key driver of online retailers' market success.

Manchester-based Boohoo is majority-owned by its Kamani family founders, has discovered a niche in the industry.

It designs, sources and sells own-brand clothing, accessories and shoes through its website to a core market between the ages of 16 and 24.

Online sales have also allowed it to move beyond a UK focus towards global markets.

Its sales soared 70% to £91.9m in the 10 months to December 2013, while pre-tax earnings shot up 188% to £10.1m

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