Very Group, the UK-based digital fashion retail giant, is reportedly considering an initial public offering (IPO) on the London Stock Exchange. The company’s owners, the Barclay family, are looking to revive plans to float the business, which is valued at £4 billion. While Very Group has not made any official comments on the matter, the public listing could potentially occur by mid-next year.

The decision to pursue an IPO comes as Very Group experienced a significant boost in online sales due to the pandemic. Initially, the company’s bosses had wanted to go public, but these plans were delayed due to concerns about the unpredictable performance of tech firms in the stock market. The listing was further postponed due to inflation concerns, particularly amid the situation in Ukraine.

In its annual results for the year ended 3 July 2021, Very Group reported a 13% increase in group revenue, reaching a record £2.3 billion. The main driver of this growth was the success of Very retail sales, with the customer base expanding to 3.82 million. The overall number of customers for the group reached 4.82 million. Although the performance of its Littlewoods arm was not as impressive, the success of the Very business, particularly in the fashion category, helped to offset any shortcomings.

To ensure a smooth transition through the public listing process, senior managers at Very Group have been offered incentive packages to encourage them to stay with the company for additional years. This move aims to provide stability and guidance during the crucial listing phase.

Ultimately, the decision to revive plans for a stock exchange listing demonstrates the owners’ confidence in Very Group’s future growth potential. With strong online sales and a growing customer base, the company is well-positioned for success in the public market.

Useful links:

1. London Stock Exchange
2. Very Group website