Online-only construction retailer CMO announces stock market listing
Bosses hope to raise £45 million from the flotation, valuing the business at £95 million.
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Your support makes all the difference.Online-only building materials business CMO has announced plans to list on the junior AIM London Stock Exchange valuing the firm at £95 million.
The company is the latest in a long line of recent stock market listings, or Initial Public Offerings (IPOs), and bosses hope to raise £45 million from the flotation.
First day of trading is expected to start on July 8 with the money raised planned to be used to reduce debts and invest in future growth.
Today marks a significant landmark in CMO’s corporate journey and will provide the company with the platform to continue to deliver our growth ambition
It comes four years after private equity group Key Capital Partners invested £8.65 million in 2017 and sees the firm retain a 26.8% stake, which will be worth around £25.5 million.
Chief executive Dean Murray said: “Today marks a significant landmark in CMO’s corporate journey and will provide the company with the platform to continue to deliver our growth ambition.”
He added: “CMO has an exciting opportunity ahead as we continue to capitalise on our first-mover advantage and digital platform to further increase market share as customers increasingly move online for their building materials requirements.
“We are particularly encouraged by the strong demand we have experienced from high calibre institutional investors, which is clear validation of CMO’s market opportunity and strong future growth potential.”
The company trades under various online brands, including Total Tiles and Drainage Superstore, and recorded revenues of £45 million in 2019, according to its most recent accounts published on Companies House with a pre-tax loss of £2.2 million.
Bosses hope to cash in on the rise and rise of online shopping during the Covid-19 pandemic and a boost in the construction sector, which has seen projects postponed during lockdowns now restarting.
The listing follows similar flotation announcements this week from make-up and skincare group Revolution Beauty and private equity group Bridgepoint.