Pandemic-fuelled shopping boom causes rise in retail IPOs

The pandemic fuelled shopping boom has meant that there has been a rise in the number of retail IPOs on stock exchanges last year.

Around 10 retailers floated this year, including furniture retailer and greetings card company Moonpig, compared to only three in the past three years.

Eight out of the 10 firms were ecommerce companies according to research from law firm RPC.

Consumers have continued the trend of ordering online despite the reopening of the high street as Covid restrictions have started to lift.

A number of other retailers including Procook, Marks Electrical, Devolver Digital, MusicMagpie, CMO, Seraphine, Victorian Plumbing and Dr. Martens have all floated on the stock exchange over the past 12 months.

READ MORE: China to close loophole which allows companies to float on foreign stock markets

Despite the record number for the past three years, there are also a number of firms that have decided to delay plans for a listing as a result of some disastrous debuts of companies such as Deliveroo and THG on the London Stock Exchange.

“The unlocking of the IPO market in 2021 for retailers is great news. It dramatically increases the funding options for retailers with growth ambitions,” RPC co-head of retail Karen Hendy told CityAM.

“We are expecting to see more new retail concepts expand into the post-Covid landscape and having a wider choice of sources of capital will help that rollout.”

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