LONDON, Feb 7 (Reuters) - AO, the British online retailer ofmajor domestic appliances, plans to list its shares on theLondon Stock Exchange, joining a rush of recent retailflotations.
AO owner DRL Holdings Limited said on Friday it would bere-registered and renamed as AO PLC and expected to list inMarch.
The firm's share offer will comprise an offer of new sharesto raise gross proceeds of approximately 60 million pounds ($98million) and an offer of existing shares to be sold by theselling shareholders.
The selling shareholders will include some of the company'sdirectors, senior management and private investors who havesupported the growth of the group. Current free floatexpectations are of at least 25 percent of AO's share capital.
The Financial Times reported last month that AO was aimingfor a 1 billion pounds valuation when it floats.
The listing of AO, whose rivals include Dixons Retail, the UK's No.1 electricals retailer, is one of manyexpected in the sector in 2014.
Russian hypermarket chain Lenta and newsagent andconvenience store McColl's have both announced intentions tofloat in recent weeks, while British retailers Poundland, Petsat Home and House of Fraser are also expected to come to marketlater this year.
Led by Chief Executive John Roberts, its co-founder andlargest shareholder with around a 40 percent stake, AO sellsabout 4,000 products from over 30 appliance brands, installs,removes and recycles old appliances.
In 2012 AO had a 24 percent share of the UK online marketfor major domestic appliances, of which 19 percent representedAO website sales, and 5 percent represented third-party brandedwebsite sales, according to an OC&C report commissioned by AO.
From the fiscal year ended March 31, 2011 to March 31, 2013AO's revenue increased at a compound annual growth rate of 29.6percent to 275.5 million pounds, while earnings before interest,tax, depreciation and amortisation (EBITDA) increased at acompound annual growth rate of 57 percent to 10.7 million.
"A London listing will give us the platform to continue togrow our business. Ultimately, it is our ambition to be aleading European online electrical retailer," said Roberts.