Greetings card company Moonpig eyes £1billion London listing

FILE PHOTO: The offices of the London Stock Exchange Group are seen in the City of London, Britain December 29, 2017. REUTERS/Toby Melville

LONDON (Reuters) – Online greeting card company Moonpig is planning an IPO in London that could value the private equity-backed company at more than 1 billion pounds ($1.36 billion), have sources familiar with the project said on Tuesday.

The company, which operates in Britain as Moonpig and in the Netherlands as Greetz, is targeting net debt of twice earnings before interest, tax, depreciation and amortization (EBITDA), it said. she said in a statement.

Moonpig, which is 41% owned by Exponent Private Equity Partners III, is expected to target a free float of at least 25% and has lined up several major investment banks to manage its stock offering, including Citi, JP Morgan, HSBC, Numis and Jefferies.

The company generated revenue of 173 million pounds in the year to April 2020 and 156 million pounds in the half year to October 2020, the company said.

“As leaders in the accelerated transition to the web, now is the perfect time for us to bring the company to the public market,” said Moonpig CEO Nickyl Raithatha.

Moonpig, specialist shoe retailer Dr. Martens and infrastructure fund Foresight all announced listing plans this week, to take advantage of heightened interest in UK equities.

($1 = 0.7373 pounds)

Reporting by Carolyn Cohn, editing by Sinead Cruise

Mika R. Pyle