Tech resale site Music Magpie plots London stock market float
Resale site Music Magpie is plotting an initial public offering in London after enjoying a bump in revenue during the coronavirus lockdown.
The company has tapped investment banks Peel Hunt and Shore Capital to lead the float, which is expected to take place next year.
Music Magpie allows customers to exchange their old electronic devices, DVDs, games and books for cash.
It then refurbishes the products and resells them at a discounted price on its own store and on third-party sites.
Since its inception in 2007, the resale hub, which is backed by private equity firm NVM, has grown into the largest third-party seller on both Amazon and Ebay.
While the company initially focused on products such as DVDs and CDs, it has enjoyed rapid growth by reselling electronic devices such as smartphones, tablets and laptops, and is now the UK’s largest phone recycler.
Sources close to the company said Music Magpie had benefited from the rising cost of tech gadgets, as well as an increased awareness of environmental issues among consumers.
The firm, which says it recycles 95 per cent of the products it receives, describes itself as a “circular” business that supports the reduction of electronic waste and mining for precious metals used in tech products.
Music Magpie is also said to have enjoyed bumper trading since the outbreak of Covid-19 as consumers have cleared out unwanted items and looked to raise cash amid the economic downturn.
It is not clear how much the company is seeking to raise through the initial public offering, which was first reported by Sky News.
If the float goes ahead, Music Magpie will join a growing number of digital businesses looking to list in London after enjoying a rise in revenue during the pandemic.
Last month the Hut Group raised £1.88bn in the capital’s largest IPO since 2015. Deliveroo is also said to be eyeing a stock market debut early next year.