The Hut Group plots mega £4.5bn London initial public offering
The Hut Group today unveiled plans for a £4.5bn float on the London Stock Exchange in a move that is set to land its co-founder a bumper payday.
The consumer brands retailer, which is based at Manchester Airport, said in a filing that it intends to carry out a free float of at least 20 per cent of its issued share capital.
The company said it planned to raise at least £920m from the initial public offering.
“Our intention to float The Hut Group on the London Stock Exchange reflects the achievements of the past but also our strong belief in the significant potential for THG in the future,” said founder and chief executive Matthew Moulding.
“THG has enjoyed strong growth since being founded in 2004, employing more than 7,000 people and establishing a track record of consistent delivery for our customers.”
A swathe of City bankers are linked to the fundraising: Goldman, JP Morgan, HSBC, Citigroup, Barclays, Numis and Jefferies are all in on the deal.
The Hut Group owns beauty and nutritional brands such as Myprotein and sells third-party products through its websites.
The firm said it has enjoyed rapid growth this year, with revenue rising 35.8 per cent to £676m.
The float is likely to be the first major London IPO since the start of the coronavirus pandemic, which put global stock market listings on hold.
It could also mark one of the bigger corporate bonus payouts in history for co-founder and boss Moulding.
Under the terms of The Hut Group’s long-term incentive scheme, Moulding could receive shares worth more than £700m if the company achieves a market capitalisation of £7.25bn by December 2022, Sky News reported.