The Hut Group starts trading on LSE in biggest UK IPO since 2015

Online retail and technology business The Hut Group (THG) began trading on the London Stock Exchange (LSE) at 8am this morning (16 September) after raising £1.88 billion in its initial public offering (IPO).

Listed as THG Holdings, the company’s market valuation at time of float was approximately £5.4 billion.

It is the largest UK IPO in terms of total deal since payment technology company Worldpay’s listing in 2015.

The deal comes during a period when eCommerce holds more of a percentage of total retail sales than ever before.

According to the Office for National Statistics, online retail’s percentage of total retail sales peaked at 33% in May at the height of the pandemic. Although it dipped recently as shops reopened after the coronavirus lockdown, commentators  expect eCommerce market share to stay well above the circa 20% level it held at the start of 2020.

Matthew Moulding, founder, CEO & chairman of THG, which owns brands such as Lookfantastic and Myprotein, and provides third parties with its Ingenuity tech platform to support their eCommerce growth, called it a “highly successful offer of shares in the company”.

“The results of the offer are a clear validation of our business model, significant growth prospects, and recognition of the hard work and talent of all our colleagues,” he said.

“Our flotation is the start of an exciting new phase in THG's development and we look forward to sharing that journey with our new shareholders."

THG recently agreed a 10-year deal with DIY retail chain Homebase to provide it with its Ingenuity platform and support eCommerce growth.

Homebase has access to THG Ingenuity’s proprietary end-to-end eCommerce toolkit, meaning it will begin to replace its current systems and tap into THG’s web development, web hosting, fulfilment, and payment infrastructure, as well as its content studios.