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Global Fashion Group prepares IPO

International etailer Global Fashion Group (GFG) is gearing up to float on the Frankfurt Stock Exchange

It hopes the initial public offering will raise €300m (£262m).

GFG currently serves 11.5 million customers through its four ecommerce businesses, The Iconic, Zalora, Dafiti and Lamoda, which service 17 countries across Asia-Pacific, Latin America and the Commonwealth of Independent States.

In a recent interview with Drapers, co-CEO Patrick Schmidt said the company is working with 10,000 brands including Nike, Levi’s, Adidas and Tommy Hilfiger to deliver them to hard-to-reach and difficult-to-service areas.

The etail group, founded in 2011, is expected to reach a net merchandise value of between €1.7bn and €1.8bn (£1.5bn and £1.6bn) in 2019. Revenue is predicted to reach €1.3bn (£1.1bn).

GFG broke even on an adjusted EBITDA basis in its Latin America segment and Australia in 2018.

The IPO is expected to consist only of newly issued common shares. The proceeds will be used to invest in the company’s technology platform, customer acquisition and fulfilment and delivery infrastructure, including automation.

Schimdt and his co-CEO Christoph Barchewitz said: “It is still very early days for fashion and lifestyle ecommerce in our markets. Today most of our markets have less ecommerce adaption than Europe had 10 years ago. As consumer behaviour migrates towards ecommerce, GFG’s well-known consumer platforms, local teams and fashion-specific operational infrastructure put us at the forefront of this growth opportunity.

“An IPO will allow us to keep investing in our end-to-end customer proposition, further strengthening our position as the leading fashion and lifestyle destination in growth markets.”

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