Ocado shifts 80pc of shares as IPO hangs in the balance
OCADO’S future was finely poised last night, with sources close to the firm’s planned £1bn flotation saying it has only shifted 80 per cent of the shares on offer.
The firm maintained it is pleased with the progress and is confident it will sell the remainder of the shares but would not comment on the valuation. Most commentators believe it will come in at below the mid point.
Orders for Ocado shares close today, with the pricing announced tomorrow. They are being offered at a range of between 200p to 275p.
The take-up will particularly worry Ocado’s founders in light of the pulled Fairfield IPO, which was scrapped after failing to drum up enough interest in a cautious market. It had planned to raise £500m but has now shelved the fundraising until at least next year. New Look and Merlin have also pulled IPOs this year. Ocado, led by chief executive Tim Steiner, has come under fire from a string of analysts who have baulked at the asking price.
The online grocer says it wants to raise £200m to fund its expansion plans. Existing shareholders, including the John Lewis Pension Fund, will also sell shares worth around £200m.