Showroomprive’s IPO raises $280 million

October 30, 2015 10:47 AM

(Bloomberg)—Online retailer Showroomprive and its owners sold shares for 256 million euros ($280 million) in an initial public offering as the company seeks to expand beyond France amid intensifying domestic competition from bigger rivals such as SA and Inc.

Based on the offering price of 19.50 euros per share, Showroomprive’s market value is about 660 million euros, the company said in an emailed statement. That price was at the low end of the initial range of 19.50 euros to 26.30 euros a share it announced earlier this month. Shares of Showroomprive, No. 49 in the Internet Retailer 2015 Europe 500 Guide, fell as much as 6.4% to 18.25 euros on Friday in the company’s first day of trading in Paris.

Deezer, another French startup, this week postponed its IPO project, citing market conditions. Deezer, which sells music streaming packages, said it will review other fundraising options.

“We’re happy with the result especially as many IPOs have been canceled or pushed back because of a bad market,” Showroomprive co-CEO Thierry Petit told Radio Classique on Friday. “We saw during the roadshow that investors like our model, even in a complicated context like this one.”

French flash-sales sites, which offer goods at a discount for a limited period online, are targeting shoppers in neighboring countries to cope with a crowded market at home. Showroomprive has said it plans to use the funds to grow outside its domestic market and possibly for acquisitions. France made up 85% of Showroomprive’s sales last year, Petit said.

In the IPO, Showroomprive raised 50 million euros through a share capital increase, while existing shareholders sold stock for about 176 million euros. In addition, China’s Vipshop Holdings Ltd. invested 30 million euros, Showroomprive said.

Rothschild & Cie acted as financial adviser in the IPO.





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