Asos plans to move to main London Stock Exchange market following 20 years on Aim

Asos has announced it plans to move to the main market of the London Stock Exchange (LSE) following 20 years on Aim, prompting shares to leap.

The clothing etailer floated on Aim in 2001 and is one of the the junior market’s biggest companies, with an equity value of £2.2 billion.

The company’s share price has fluctuated over the past 12 months and a profit warning in October prompted the resignation of chief executive Nick Beighton.

“The time is now right to move to the main market as we focus on delivering our medium-term guidance and longer-term growth ambitions,” Asos chief operating officer Mat Dunn told the Financial Times.

The move by the end of next month “definitely opens up the pool of investors,” Dunn added.

READ MORE: ASOS responds to accessibility concerns: “We want everyone to be able to confidently shop at ASOS”

Shares were up by over 10% in early morning trading following the news.

Online clothing firms enjoyed pandemic success early on, capitalising on the closure of bricks-and-mortar based brands including Primark, H&M and Zara.

However, increasing freight costs and logistical challenges have hit profits since then as a result of the global supply chain crisis which has hampered the retail sector.

The company’s gross margins fell 400 basis points to 43% despite strong sales growth over the Christmas period due to elevated transport costs.

Dunn is optimistic about the future however, adding that he felt that “consumers are learning to live their lives in the face of the virus”.

He also shares the view that the global supply challenges should ease off now the busy Christmas season has finished.

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