Global Fashion Group cuts IPO offer price

Global Fashion Group (GFG) has cut the price of its planned initial public offering (IPO) to 4.50 euros per share, down from an initial price range of 6 to 8 euros per share.

The company, which operates e-commerce platforms The Iconic, Zalora, Dafiti and Lamoda, said it placed 44 million shares, raising 180 million euros and a further 4 million existing shares to cover over-allotments which, if exercised, would increase proceeds to 198 million euros.

Swedish investor Kinnevik and German investor Rocket Internet will be allocated shares for 60 million and approximately 50 million euros, respectively.

At the beginning of June, GFG announced plans to conduct an IPO and a listing of its shares on the Frankfurt Stock Exchange. It said it aimed to raise approximately 300 million euros which it would use to “fuel continued growth by investing in the technology platform, customer acquisition, and fulfilment and delivery infrastructure, including automation, as well as other general corporate purposes.”

Last week, GFG announced it had postponed the offer period for the IPO, which was planned to end 25 June, to 28 June.

GFG’s shares are expected to start trading on the regulated market (Prime Standard) of the Frankfurt Stock Exchange under the trading symbol GFG on 2 July, with settlement of the offering planned for 4 July.

Photo credit: The Iconic, Facebook