Watches of Switzerland PLC (LON:WOSG) made a strong start to trading on the London Stock Exchange on Thursday with its shares rising by as much as 17%.
The UK’s largest luxury watch retailer priced its stock at 270p each, near the upper end of the 250p-277p range it had targeted.
The shares started trading at 8am on Thursday. By late morning, the shares were changing hands at 307p each, giving the company a market value of £735mln.
The company floated 34% of its issued share capital.
"Today marks the next phase in our growth story,” said chief executive Brian Duffy.
“I am delighted by the reaction we have received from the market to our business and the significant opportunities that lie ahead.”
The retailer, which sells expensive watches made by the likes of Rolex and Cartier, plans to use the proceeds of the initial public offering to cut debt and raise its public profile.
The initial offering included about 47mln new shares, bringing in gross proceeds of £155mln, and 24mln existing shares being sold by current shareholders, raising a further £220mln.
The float gives US-based private equity owner, Apollo Global Management, the chance to sell off some of its holding, although it will still remain a controlling shareholder.
In the year to January 27, the company generated revenue of £746mln while adjusted underlying earnings (EBITDA) clocked in at £67.7mln.
Watches of Switzerland operates from 125 stores in the UK, as well as 21 stores in the US.