AO, the British online retailer of major domestic appliances, plans to list its shares on the London Stock Exchange.
AO owner DRL Holdings Limited said on Friday it would be re-registered and renamed as AO PLC and expected to list in March.
The firm’s share offer will comprise an offer of new shares to raise gross proceeds of approximately £60 million and an offer of existing shares to be sold by the selling shareholders.
The Financial Times reported last month that AO was aiming for a 1 billion pounds valuation when it floats.
Led by Chief Executive John Roberts, its co-founder and largest shareholder with around a 40 percent stake, AO sells about 4,000 products from over 30 appliance brands, installs, removes and recycles old appliances.
In 2012 AO had a 24% share of the UK online market for major domestic appliances, of which 19% represented AO website sales, and 5% represented third-party branded website sales, according to an OC&C report commissioned by AO.
From the fiscal year ended March 31, 2011 to March 31, 2013 AO’s revenue increased at a compound annual growth rate of 29.6% to £275.5 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased at a compound annual growth rate of 57% to £10.7 million.
AO plans to expand its range of products and services with the proceeds of the fundraising.
This includes starting to sell items such as televisions after a recent expansion of its product range to include small domestic appliances such as vacuums, floor cleaners, coffee machines, mixers and food processors.
The company has also recently launched premium installation services to certain customers and could look to expand this for a broader range of products.
The company is also eyeing international expansion opportunities in Europe, initially in Germany, and may consider expansion into other markets
John Roberts, co-founder and chief executive officer of AO, said: “AO comes to market with a leading customer proposition that I believe will appeal to the consumers of both today and tomorrow. We aim to put the customer first in everything we do and are fanatical about offering customers amazing service and competitive pricing.
“AO has a strong track record of revenue growth and profitability and I am excited about the opportunities ahead as we continue to grow our new AO.com brand. We are exploring opportunities to expand the range of products and services that we offer and to internationalise our business. I believe these initiatives have the potential to deliver a significant change in terms of our addressable market and that a London listing will give us the platform to continue to grow our business. Ultimately, it is our ambition to be a leading European online electrical retailer.
“I have never been more excited about our business and the ability of our team to deliver on our vision for the future.”
“A London listing will give us the platform to continue to grow our business. Ultimately, it is our ambition to be a leading European online electrical retailer,” said Roberts.