AO Plc IPO Could Value Company At $2 Billion

Source: Bloomberg, Friday, Feb 21, 2014

UK web retailer AO Plc is planning an initial public offering of stock, and demand for shares could value the company at 1.2 billion pounds ($2 billion).  AO sells appliances online, holding 24% of the online UK market for that segment in 2012.

AO is one of several UK companies that have recently announced IPOs.  Others include Poundland and Pets at Home.  Retailers are seeing improved consumer confidence in the country, and are taking advantage by going public.  London IPOs raised $19b USD in 2013, around twice the amount that was raised in 2012.

AO will list on the London Stock Exchange.  If shares are offered at the high end of the company's indicated range, it will be valued at 72 times its projected 2015 EBITDA.  In the company's fiscal year ended March 2013, revenue grew 32% to 275.5 million pounds, and EBITDA was 10.7 million pounds.