Shares of The Hut Group (LON:THG) gained over 30% in its first day of public trading on Wednesday. Shares opened at 600p before hitting a session’s high at 658p. Based on today’s trade activities of The Hut Group, the company is valued at 5.4 billion pounds.
Today’s high is 30% higher compared to the price of 500p a share, at which the company sold 376 million shares for 1.88 billion pounds. The Manchester-based e-commerce company offers its services to companies such as Lookfantastic and ESPA.
As a result, The Hut Group’s IPO is the largest one conducted via the London Stock Exchange since Royal Mail’s IPO in 2013. A generated sum of 920 million pounds is expected to be used for the company, while its shareholders are expected to split the remaining 961 million pounds.
The founder and the biggest shareholder, Matthew Moulding, is expected to continue as the Chairman and CEO.
This marked the largest initial public offering in the London stock market since Royal Mail’s IPO in 2013. The Hut Group’s IPO secured 920 million pounds for the company, while its shareholders, led by founder Matthew Moulding, will split the gross amount of 961 million pounds.
The Hut Group share price is now trading at 649.60p (1200BST).