Renowned online greeting card and gifts retailer, Moonpig has reportedly announced its plans for a floatation of £1.2 billion on the London Stock Exchange, as the demand for its personalized gifting products significantly increased during the COVID-19 pandemic.
Unveiling the details of this initial public offering (IPO), Moonpig which has been owned by Exponent, a private equity firm, since 2016, stated that it would float at least a quarter of the company. Sources have confirmed that The US based companies Dragoneer Global Fund and BlackRock have agreed to purchase £130 million worth of shares, which are anticipated to begin trading from next month.
It has been reported that Kate Swann, chairperson of Moonpig and WH Smith’s former chief executive is likely to gain £7 million from the floatation. While Nickyl Raithatha, chief executive of Moonpig, is in line for £11 million and Andy MacKinnon, the finance director is likely to get a benefit of £2 million. Besides, the company’s 450 employees will also be provided with shares.
Commenting on the company’s plan to launch its IPO, Raithatha has stated that as market leaders making rapid shift online, Moonpig Group is thrilled to enter the public market. The company’s data-powered technology platform offers exceptional experience to its customers, Raithatha added.
Apparently, the decision of floatation comes post a grand year for Moonpig. The retailer sells personalized cards with a wide variety of gifts such as flowers, gin, prosecco, beer and chocolate. Further, the Covid-19 pandemic has boosted its sales, as the company gained 1 million new customers during the first eight weeks of the first national lockdown in the spring.
For the record, Moonpig has become the UK’s largest online retailer of greeting card having over 12 million customers, as multiple lockdowns led to shutting of various high street rivals such as Clintons. The retailer sold 46 million cards and 7 million gifts and flowers over 12 months to October, and it now receives nearly 300,000 orders per day and one third of these order come through its app. Reportedly, Moonpig made £156 million in sales in the six months to the end of October against £173 million in the entirety of 2019.