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Westwing plans IPO
Posted on Thursday, 13 September 2018 14:27
Westwing Group, a leading online furniture eCommerce business, is eyeing an initial public offering (IPO).
It plans to list its shares, which primarily comprise newly-issued stock following a capital increase, on the Frankfurt Stock Exchange.
According to Reuters, the company, which is backed by Rocket Internet, aims to raise EUR 120.00 million (USD 139.00 million).
The news provider also notes that it will use proceeds from the listing to repay debt.
Stefan Smalla, chief executive of Westwing, said: “The planned IPO will provide us with additional funding that we will use to continue our profitable growth.”
The company expects that the listing will allow it to increase its share of the home and living market, which currently stands at 5.0 per cent, and provide greater opportunity for further investment.
Westwing, the news provider notes, brings with it a large online following, with predominantly female customers being attracted to its discounts and sales offers.
As a result, it lowered its marketing spending to 6.0 per cent of sales in 2017, significantly lower than most eCommerce businesses, Smalla added.
Reuters notes that the IPO comes during a time of slow progress in the furniture and homeware sector, which has only recently gained a significant online presence.
However, the listing could allow Westwing to follow in the footsteps of industry giant Ikea, which posted a 12.0 per cent increase in online sales in Germany in 2017, the news provider observed.
Despite a loss of EUR 4.90 million before earnings before interest, tax, depreciation and amortisation (EBITDA) in 2017, the company expects 15.0 per cent to 20.0 per cent increase in sales, as well as a margin of 1.0 per cent to 2.0 per cent EBITDA for the full year.
Headquartered in Munich and formed in 2011, Westwing is an online provider of luxury furniture and products for the household.
It operates across 11 countries in Europe, and in 2017 posted revenue of EUR 220.00 million.
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