British personalized card retailer Moonpig confirms €1.3B IPO

GaryPageau , ,

UK-based online greeting card and gifts retailer, Moonpig Group, confirmed plans for a $1.6 billion (about  €1.3 billion) IPO listing on the London Stock Exchange next month. The firm says at least 25 percent of the share capital would be made available at the IPO. BlackRock and Dragoneer Global Fund have already agreed to buy £130 million (approx €146.1 million) of the shares – £80 million (approx €89.9 million) and £50 million (approx €56.2 million), respectively.

“As leaders of a market undergoing an accelerating shift online, we’re delighted to bring Moonpig Group to the public market,” says Nickyl Raithatha, CEO, Moonpig Group. “Our data-powered technology platform makes it incredibly easy for our customers to create more special moments for the people they care about. As the market-leading platform, with a strong track record, and a huge opportunity to grow, we are confident about our decision to become a publicly-traded business.”

Moonpig has more than 12 million customers and also trades in the Netherlands, under the name Greetz. According to the Guardian, Moonpig delivered 46 million cards and 7 million gifts and flowers in the 12 months to October, and it deals with up to 300,000 orders a day. Moonpig made £156 million in sales in the six months to the end of October, compared with £173 million for the entire previous year.

Moonpig was founded two decades ago by Nick Jenkins, a former commodities trader at Glencore and “Dragon’s Den” star, who named the firm after his schoolboy nickname. He made £42 million in 2011 from the sale of the business to the online photo printing company Photobox, which was subsequently bought by the private equity firms Electra and Exponent. Photobox and Moonpig were split in 2019.

According to The Guardian, Moonpig is chaired by Kate Swann, the former chief executive of WH Smith who is expected to make £7 million (approx €7.8 million) from the IPO. Raithatha is in line for £11 million (approximately €12.3 million), and the finance director, Andy MacKinnon, will also benefit, with £2 million (approximately €2.2 million). In addition, the retailer’s 450 employees will also be given shares.