In The Style valued at £105m on strong IPO demand

In The Style said it would be valued at £105m after strong demand from investors for the online fashion retailer's initial public offering.

The company said it placed 5.5m new shares and 24.5m existing shares at 200p each with institutional and other investors.

The IPO will be priced at the top of the proposed range and is expected to raise £11m gross for the company and £49m for its selling shareholders. When the shares start trading, In The Style will have a free float of 44.2%.

The company's business has boomed during the Covid-19 crisis as shoppers have gone online, leading to an oversubscribed IPO as investors seek to gain exposure to online fashion sales. Net sales jumped 158% to £35.4m in the nine months to the end of December.

In The Style will join rival online fashion groups Boohoo and Asos on the AIM market. The company has carved out a niche by selling collections endorsed by so-called influencers such as UK TV personalities Dani Dyer and Charlotte Crosby.

Adam Frisby, chief executive, said: "We are thrilled by the very positive reception to our IPO from a wide range of high-quality institutional investors. This is a great testament to In The Style's differentiated brand, innovative influencer collaboration model, and exciting opportunities for future growth."

The company said it would spend the net proceeds of the placing plus some existing cash to develop its social media influencer network, invest in brand marketing, expand outside the UK and move to a bigger warehouse.

The shares will start trading on AIM on 15 March, leaving Causeway Capital Partners with 14.5% of the company and senior management owning 27.3%.