Manchester-based consumer brand and technology giant The Hut Group (THG) has appointed a group of investment banks to work on a possible stock market flotation this year, according to a news reports.

Citi, JP Morgan, Barclays, Goldman Sachs, HSBC, Jefferies and Numis are said to be working on the potential initial public offering (IPO) of shares that could value The Hut Group at over £4 billion.

Privately-owned THG has existing institutional shareholders that include KKR, BlackRock, Old Mutual, Sofina, Balderton Capital and Merian Chrysalis Investments.

Matthew Moulding, founder and CEO of The Hut Group, is its biggest shareholder.

News reports claimed The Hut Group may stage a £1 billion sale of new and existing shares in the firm as soon as September.

The reports said the company has been talking to investors including Edinburgh-based Baillie Gifford, Capital Research Group, a Singaporean sovereign wealth fund, Dragoneer Investment Group and TSG Consumer Partners about a sale of shares that would value it at well over £4 billion.

The Hut Group said: “Each year THG speaks to major global investors about future investment to support global growth plans.

“This has always been done as a private company, and this year is no different.”

The Hut Group’s sales rose 24% to £1.14 billion and gross profit increased 22% to £511 million in the year to December 31, 2019. 

International sales now comprise 66% of The Hut Group’s business.