Cellphone recycler musicMagpie reveals strategies for £208 million London IPO

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usicMagpie, the next-hand gadget seller, has discovered programs for a £208 million flotation on London’s junior Intention current market.

The company, established in a garage in Stockport in 2007, is the UK’s greatest cell telephone recycler. It lets users to trade in their previous phone, console or CD for cost-free and obtain payment on the working day it arrives with the business. Recycled merchandise appear with a 12-thirty day period warranty.

The organization, which also operates less than the Decluttr manufacturer from a foundation in Atlanta, Georgia, and sees US product sales accounting for all-around 25% of team turnover, is lucrative. Most recent accounts exhibit it built £13.9 million in income in the 12 months to December on revenues of £153 million.

The company explained it is expecting to raise £95 million for selling shareholders as a result of the listing, anticipated up coming Thursday, like for some extended-term private equity backers. Administrators and senior administration are set to have 11.5% of the firm on IPO.

The business also hopes to elevate £15 million to pay back down firm credit card debt and gasoline most recent projects by the float, together with for its Apple iphone rental supplying and the current start of telephone recycling “smartdrop kiosks” in supermarkets.

The corporation, which lists merchandise on Amazon Marketplace and eBay as nicely as on its personal web page, was co-established by Steve Oliver and Walter Gleeson from their garages. Gleeson created the initial variation of the company’s proprietary know-how, which automates choice-creating and shopping for procedures for the business.

Oliver said the pair would “hardly ever in a million many years” have believed at the time that they would ever float their enthusiasm undertaking.

He said: “When I was driving a lorry and Walter was programming I really don’t believe we imagined this day. We are massively very pleased.”

MusicMagpie will be join a notable flurry of tech-enabled companies floating London so considerably this 12 months, from Intention floats of Virgin Wines and Parsley Box to the billion pound-moreover IPOs of Moonpig, Trustpilot and Deliveroo.

Oliver, who refers to the firm’s tech as “the mystery sauce of the enterprise” that has authorized it to “scale and flex”, claimed the company chose London for the IPO as “the Purpose current market for fast-increasing tech firms like our possess appears definitely the appropriate dwelling for the company”.

“We were being keen to continue to be in London. We are a happy British isles business enterprise with a really significant US division,” he claimed. “We’ve observed other substantial-excellent engineering and on the web organizations appear to marketplace, begun by The Hut Group who are neighbours of ours in the north west.

“It appears to be like a really good time to be speaking to the market and hunting at boosting cash to allow for us to continue on our enlargement.”

Peel Hunt and Shore Cash are performing as joint bookrunners and joint brokers on the IPO.