Farfetch IPO gets a step closer
Farfetch is edging closer to its New York Stock Exchange float with the London-based online retailer set to meet banks in the coming weeks to handle the huge IPO.
CNBC reported that this means the IPO might happen as soon as this year as the high-end online marketplace targets a share sale that would value it as high as $5 billion/£3.59 billion.
But of course, we don’t exactly when it will happen as Farfetch is playing its cards close to its chest and has said very little on the subject. It hasn’t even officially confirmed that it’s pursuing an IPO although founder and CEO José Neves said as long ago as 2016 that its “next financial milestone” for the online retailer would be a listing.
The 10-year-old business may still be lossmaking but it has grown sales fast in recent years. It has done that by increasing turnover through its core website but also by making acquisitions such as buying Browns in 2015 and taking on the luxury e-tail business of Condé Nast after the Vogue publisher’s heavy investment in Style.com didn’t work out as it had hoped. It has also invested heavily in technology.
But, of course, such investment takes money and and IPO would provide it with the expansion cash it needs as it takes on major players such as Yoox Net-A-Porter, Matchesfashion, MyTheresa and the e-stores of the world’s luxury department stores.
It would also help it justify the almost $400 million investment made by Chinese e-tail giant JD.com last year.
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