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Global Fashion Group lists on Frankfurt Stock Exchange

International etailer Global Fashion Group (GFG) has floated on the Frankfurt Stock Exchange (FSE), after cutting the price of its planned initial public offering (IPO). 

The IPO was lowered to €4.50 (£4.04) per share, down from an initial price range of €6 (£5.39) to €8 (£7.18) per share. 

GFG said the IPO proceeds will be used to invest in the company’s technology platform, customer acquisition and fulfilment and delivery infrastructure, including automation. The company’s existing shareholders commit not to sell any shares during the first six months and may only sell up to a maximum of 20% of their pre-IPO shareholdings during months seven to 12 after the first day of trading of the shares.

Meanwhile, the new supervisory board, appointed on 31 May, comprises Cynthia Gordon (chair), Georgi Ganev, Alexis Babeau and Victor Herrero, as well as two new board members, Carol Shen and Laura Weil.

Shen was previously managing director of the Estée Lauder Companies affiliate in China and president of Gucci China. Weil brings more than 30 years of industry experience across retail, ecommerce and finance, including serving as vice-president of finance at Macy’s, executive vice-president of American Eagle Outfitters, and CEO at Ashley Stewart.

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 works 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.

Christoph Barchewitz and Schmidt, co-chief executive officers, said: “It is still very early days for fashion ecommerce in our markets. We are building the number one fashion and lifestyle destination in Asia Pacific, Latin America and CIS.

“Going public secures us funding to invest into our platform and infrastructure and in turn, benefit from the tremendous growth opportunities in our markets. As part of becoming a public company, we are also excited to welcome a new Supervisory Board, whose combined wealth of experience in fashion, ecommerce and growth markets will support us on our journey.”

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