France's Showroomprive.com to raise up to 373 mln euros in flotation

French online fashion retailer Showroomprive.com said on Monday it plans a stock market listing worth as much as 373 million euros ($424 million) to help fund international expansion and acquisitions.

The company said net proceeds would total about 45 million euros from issuing about 50 million new shares. U.S. online discount retailer Vipshop Holdings has committed to buying an additional tranche of 30 million euros of shares.

Showroomprive.com

"Our group is well positioned to benefit from European consumers' increasing use of the Internet and mobile for their fashion purchases," co-Founders and Chief Executives David Dayan and Thierry Petit said in a statement.

Founded in 2006, Showroomprive.com sells designer fashion to its 20.2 million members at steep discounts in "flash" sales, a model pioneered by larger French rival Vente-Privee.com.

Existing shareholders, including U.S. investment fund Accel Partners and Kilwa Investment, are selling shares worth between 210 million euros and 293 million in the initial public offering (IPO).

This is based on a price target of between 19.50 euros and 26.30 euros a share and includes an over-allotment option to increase the IPO by 15 percent. Trading in the shares on Euronext Paris is due to start on Nov. 3.

Petit and Dayan, who own 60 percent of the stock, have said they will keep a majority stake.

Showroomprive.com generated 2014 sales of 350 million euros and gross operating profit of 16 million. It has achieved annual sales growth of 30 percent over the last three years, driven by expansion abroad.

Already present in seven European countries, notably Portugal and Italy, it plans soon to expand to Germany.

In March, a private placement of 10 percent of the group's stock with Middle East investors valued the company at 625 million euros.

Goldman Sachs and Deutsche Bank are acting as joint global coordinators and joint bookrunners for the IPO. BNP Paribas and Societe Generale are acting as joint bookrunners. Rothschild & Cie is acting as financial advisor.

$1 = 0.8796 euros

 

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