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ASOS and Boohoo face new AIM rival as fashion retailer Quiz set for £200mln IPO

Quiz looks set to fetch a market value of £200mln in its initial public offering
Quiz
Quiz plans to open 20 new stores in the UK in the next two years

ASOS plc (LON:ASC) and Boohoo.com plc (LON:BOO) are set to face a new fashion retail contender on AIM after Quiz was priced at £102.7mln ahead of its listing on London’s junior market.

Quiz said its placing price has been set at 161p per share, giving it a market capitalisation of £200mln.

The placing is expected to raise £92.1mln of gross proceeds for the selling shareholders and £10.6mln for the company, which will be used to support its plans for expansion.

Existing shareholders will hold 48.7% of the company’s share capital after it begins trading on AIM while directors will own 25.8%.

Quiz will use proceeds to fund its plans to open about 20 new stores in the UK in the next two years and for launching more websites abroad including in Spain, the US and Australia.

As part of its growth strategy, the retail will open standalone stores in Spain and concessions in Cyprus, the US and Central America, along with further expansion in the Middle East and the Far East.

The group will also broaden its product range and develop its mobile channel.

“We have a well-invested infrastructure, a clear customer focus and a fantastic team and I am delighted that investors have recognised the Company’s significant strengths and opportunities with their support,” said Tarak Ramzan, found and chief executive of Quiz.

“We are confident that the company’s admission to AIM will help Quiz to deliver its clear omni-channel growth strategy and enable the brand to achieve its hugely exciting global potential.”

Between 2015 and 2017, Quiz has grown its revenue by an average of 21% per year and underlying earnings by about 30.6%.

In the year to 31 May 2017, the company unveiled a 37% increase in revenue, driven by online sales growth.

While Quiz has been rapidly growing, it has a way to go in catching up with ASOS, which has a market value of £4.7bn, and Boohoo, worth £2.5bn. 

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