(Alliance News) - Online review platform Trustpilot AS on Monday confirmed plans for a London Main Market float, eyeing an admission in "late March".
The IPO will consist of a raise of USD50 million from new shares, which will be used by the company to pay off debt. The company has also secured commitments from investors including BlackRock Inc, FIL Investments International, Caledonia and Henderson Global Investors Ltd to raise a total of USD240 million. This would give Trustpilot an enterprise value of up to USD1.4 billion on admission.
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.
Morgan Stanley and JP Morgan Cazenove will be joint sponsors, global co-ordinators and bookrunners for the IPO, and Berenberg and Danske Bank AS will be joint bookrunners.
"I am very pleased to confirm Trustpilot's intention to float on the London Stock Exchange. Since 2007 we have been guided by a vision to become a universal symbol of trust, bringing businesses and consumers together to foster trust and inspire collaboration," Chief Executive Officer Peter Muhlmann said.
"Becoming a listed company is the natural next step for us to continue this progress and I am delighted with the quality of institutional support we have received."
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.
Venture capital firm Draper Esprit PLC noted Trustpilot's announcement. It first invested in Trustpilot in 2013.
It has invested GBP29.7 million in Trustpilot to date and the value of its investment in the online review company was GBP80.9 million on September 30.
"Draper Esprit will update the market further at the conclusion of the IPO process," Draper added.
Draper Esprit shares were 0.3% higher at 804.00 pence each in London on Monday morning.
By Eric Cunha; ericcunha@alliancenews.com
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