AO.com is to float on the London Stock Exchange with the ambition of becoming a leading European online electrical retailer.
The company aims to raise £60m through the flotation, which is expected to complete in March. According to sources quoted by the FT, the deal is expected to value the company at about £1bn.
Its first target market overseas is Germany.
The company cites research from OC&C showing that it is already the largest online player in the UK large domestic appliances market, with a 24% share. It sells a range of 4,000 products from more than 30 brands, and offers same-day delivery for most UK postcodes when an order is placed before noon, or next-day delivery for those placed before midnight.
In Germany, said the OC&C report, the market is valued at £6.6bn.
In the year to March 31 2013, the company reported revenues of £275.5m, while earnings before interest tax and depreciation came in at £10.7m.
AO.com is led by co-founder John Roberts, and its board includes senior independent non-executive director Brian McBride, chairman of Asos.
John Roberts, co-founder and chief executive officer of AO, said: “AO comes to market with a leading customer proposition that I believe will appeal to the consumers of both today and tomorrow. We aim to put the customer first in everything we do and are fanatical about offering customers amazing service and competitive pricing.
“AO has a strong track record of revenue growth and profitability and I am excited about the opportunities ahead as we continue to grow our new AO.com brand. We are exploring opportunities to expand the range of products and services that we offer and to internationalise our business. I believe these initiatives have the potential to deliver a significant change in terms of our addressable market and that a London listing will give us the platform to continue to grow our business. Ultimately, it is our ambition to be a leading European online electrical retailer.
“I have never been more excited about our business and the ability of our team to deliver on our vision for the future.”
