Lelo, a maker of ‘luxury intimate lifestyle products’, has dropped plans to float in London and is now reportedly seeking a private buyer instead.
The Stockholm-based sex-toy designer is backed by Chinese private equity investment firm Trustar Capital Partners, and, after a strong pandemic had been tipped to raise funds in a London IPO that would’ve valued the business at around £1bn.
According to a Bloomberg report Lelo has attracted interest from corporate suitors as well as private equity funds.
Whilst the report, citing ‘people familiar with the matter, noted buyer interest it also described that new stock offerings had dried up due to market volatility.
It comes as the sexual wellbeing market is predicted to grow to in excess of US$62.3bn by the end of the decade, Bloomberg noted, and after last year’s US$1.1bn merger between British adult e-commerce firm Lovehoney and Germany company WOW Tech.
Lelo markets itself as a “sexual wellness” brand. Its products are presented as high-end and luxurious, with one gold-plated item (Inez) priced at some £10,000 each.