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With the London IPO scene set to boom this year, more and more tech businesses are gathering momentum to go public. A great example of such a company that has recently gone public and gained tremendous attention from investors is the online greeting cards and personalised gifts retailer Moonpig.
So, here are five things you need to know about this flourishing local company:
Became the first major London tech IPO of 2021
As the first major London tech IPO this year, Moonpig shares immediately jumped 25% after it went public on 2nd February. The company initially floated with a share price of £3.50, but the stock surged to £4.40 less than an hour after trading began. This favourable investor response successfully encouraged some of the selling shareholders to make an extra 14 million shares available. That’s on top of the initial 134.6 million existing shares and the additional 5.7 million shares offered to raise gross proceeds of about £20 million. Moonpig’s market capitalisation at the end of the first trading day was over £1.2 billion.
Experienced a stellar 2020 in spite of the pandemic
Numerous media reports highlight how Moonpig’s decision to float on the London Stock Exchange can be mainly attributed to the stellar 2020 the company enjoyed. Their prospectus, a key step in the IPO process, has plenty to work with when it comes to current trends and company earnings. After all, the firm delivered around 46 million cards and seven million gifts and flowers in the 12 months up to October 2020. In addition to this, an article by The Guardian also notes how Moonpig made £156 million in sales in the six months up to the end of October. That figure is only £17 million short of the company’s sales for the entirety of 2019.
Launched during the collapse of the dot-com bubble
Of course, things weren’t always as good for the company — especially since its launch coincided with the collapse of the dot-com bubble in the year 2000. However, its founder Nick Jenkins raised further investments and made the most out of the advent of broadband and digital cameras. By 2009, the company had already sold cards to 2.57 million customers and had a profit record worthy of being mentioned by The Times. In 2011, Moonpig was bought by Photobox Group for £120m in a cash and shares transaction. Subsequently, Photobox was sold to Exponent Private Equity. Today, the private equity firm owns 41% of Moonpig.
Uses a variety of technologies
In line with the company’s goal to position itself as a leader in the technology sector, Moonpig uses a variety of technologies to help meet the demands of their clients. For instance, Moonpig offers its products through its proprietary technology platforms and apps. These channels use unique data science capabilities to optimise and the personalise customer experience, as well as improve scalability. Currently, the company leverages its dataset of about 160 million cumulative transactions to capture and assess the purchase intent of its loyal customers.
Proven itself as the market leader in cards
For many years now, Moonpig has been the clear online market leader when it comes to cards. As of 2019, it holds a 60% market share in the UK among online card specialists and a 65% market share in the Netherlands, placing itself among the top three online card players. Since Moonpig operates in the large and under-penetrated gifting market in countries like the UK, the Netherlands and the Republic of Ireland, there is a big chance for it to be included in the roster of the largest tech IPOs all over Europe this year.