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Global Fashion Group sets price range for IPO

International etailer Global Fashion Group (GFG) has set the price range for its planned initial public offering at €6 (£5.35) to €8 (£7.13) per share, as it gears up to float on the Frankfurt Stock Exchange. 

The offer period, which is expected to commence on 18 June and to expire on 25 June, is subject to approval by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF). 

Trading under the company’s shares is expected to commence on or around 27 June. 

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.

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 twelve after the first day of trading of the shares. 

Christoph Barchewitz and Patrick Schmidt, co-chief executive officers, said: “This is a very exciting and important next step for GFG. Through an IPO we will be able to invest in further strengthening our end-to-end customer proposition, continue our path to profitability and reinforce our position as the leading fashion and lifestyle destination in growth markets.”

Goldman Sachs International, Morgan Stanley and Berenberg are acting as joint global coordinators and joint bookrunners, while HSBC is acting as a joint bookrunner.

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