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(Alliance News) - Trustpilot AS, an online review platform, on Tuesday set the price for its initial public offering on the London Main Market at the top end of the expected range.
The Copenhagen, Denmark-based company was founded in 2007 by Chief Executive Officer Peter Holten Muehlmann. It offers software-as-a-service applications that help businesses build trust in their products by means of independent customer reviews. The platform has hosted over 120 million reviews since starting out.
Trustpilot set its IPO price at 265 pence per share. This is at the top of the range of 250p to 265p reported by Bloomberg News last week.
Trustpilot said the IPO price gives the company a market capitalisation of GBP1.08 billion, making it one of the biggest floats in London of 2021 so far, just behind Dr Martens PLC and Moonpig Group PLC. All three, however, are far smaller than the GBP8.8 billion market cap expected for Deliveroo PLC when it makes its debut.
Trustpilot said existing shareholders will sell 161 million shares, while the company will issue 17.6 million new shares. The combined offer will be worth GBP473 million and represent 43.6% of the company's equity. An additional 26.8 million existing shares will be made available in an over-allotment option.
The shares began conditional dealings in London on Tuesday, rising 11% to 294.85p. They will start unconditional trade on Friday.
Trustpilot recorded a pretax loss of USD12.9 million in 2020, narrowed from USD22.6 million in 2019. Revenue rose to USD102.0 million from USD81.9 million. It has 669 employees.
The company is chaired by Timothy Weller since 2013. Weller founded business-to-business publisher and events organiser Incisive Media in 1994.
Morgan Stanley and JP Morgan Cazenove were joint sponsors, global co-ordinators and bookrunners for the IPO, and Berenberg and Danske Bank were joint bookrunners.
Draper Esprit PLC, which first invested in Trustpilot back in 2013, said it will sell down part of its holding to realise GBP78.3 million. The venture capital firm will continue to hold a 7.9% stake, subject to the over-allotment option, worth GBP85.5 million.
Draper Esprit said it has invested GBP29.7 million to date in Trustpilot, suggesting a return of more than five times.
"Trustpilot has done fantastically well, and we're proud to be part of this next stage in its journey," said Draper Esprit CEO Martin Davis. "With trust at its core, the public market is a great home for the business, and it's great for the UK to have such a tech success story listing in London."
Draper Esprit shares were up 0.5% at 858.53 pence on Tuesday morning.
By Tom Waite; thomaslwaite@alliancenews.com
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