Stockport-based musicMagpie, the online reseller that specialises in secondhand technology such as smartphones and games consoles, has announced plans for a £208 million flotation.
musicMagpie announced a proposed admission to trading on AIM of 7,772,020 new ordinary shares and 49,415,850 existing ordinary shares, both at a price of 193p, with institutional and other investors.
The company said: “Based on the placing price, the market capitalisation of the company will be approximately £208 million on admission …
“The placing of the new shares is expected to raise gross proceeds of £15 million for the company and the placing of the sale shares is expected to raise gross proceeds of £95 million for selling shareholders …
“The placing attracted strong support from high quality institutional investors and was comfortably over-subscribed …
“On admission, the company will have 107,772,020 ordinary shares in issue and a free float of approximately 53 per cent …
“On admission, directors and senior management (together with their connected parties) will own approximately 11.5 per cent. and funds managed or advised by NVM Private Equity LLP and Mercia Fund Management Limited will together own approximately 16.1 per cent of the issued ordinary shares …
musicMagpie CEO and co-founder Steve Oliver said: “We are thrilled that musicMagpie’s circular economy model has resonated so strongly with investors, and are delighted to have received such a high level of demand for the placing.
“Given the ongoing move to tackle the growing problem of e-waste and the fact that consumer attitudes towards buying refurbished consumer technology products are rapidly changing, we believe that there is significant potential for musicMagpie’s future growth prospects.
“In the UK alone, we estimate that people are sitting on around £16.5 billion worth of technology that they no longer use, and that only a small percentage of consumer technology items are currently recycled.
“The listing on AIM of musicMagpie reflects not only the success that we have enjoyed to date but also our confidence in our ability to capitalise on the favourable long-term trends that continue to drive the company’s strong performance.”