Stockport-based re-commerce business musicMagpie has announced its proposed admission to trading on AIM with the commencement of dealings expected to take place on 22nd April.
The confirmation from musicMagpie comes following an announcement from one of its investors, Northern 2 VCT, earlier this month.
Based on the placing price of 193 pence per Ordinary Share, the market capitalisation of the Company will be approximately £208 million on Admission. The stock market flotation is expected to raise gross proceeds of £15 million for musicMagpie, and raise a further £95 million for selling shareholders. The net proceeds raised for the company will be used to repay existing debt facilities and fund the Group’s working capital requirements, in particular the expansion of its smartphone rental proposition.
musicMagpie’s initial public offering (IPO) has attracted strong support from institutional investors and share placings were comfortably over-subscribed. The company’s directors hope that their admission to AIM will assist future growth for the businesses, while further strengthening the musicMagpie brand.
Peel Hunt and Shore Capital are acting as joint bookrunners and joint brokers to musicMagpie in relation to the Placing and Admission. Peel Hunt is also acting as Nominated Adviser to the company; Deloitte LLP is acting as financial adviser.
Founded in 2007, the musicMagpie has an established presence in the UK, with operations in Stockport, Greater Manchester, and in the US in Atlanta, Georgia as Decluttr. Over 400,000 consumer technology products were resold to consumers in the year ended 30 November 2020, along with approximately 2,500 tonnes of books and disc media each year that could have ended up as waste. Revenue during the year ending 30th November 2020 hit £153.4 million.
In December 2020, musicMagpie launched a corporate recycling service, allowing businesses to recycle their mobile phones and other electronics in bulk to support environmental commitments.