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Ocado float priced at 180p
Tue, 07 Feb, 2012
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Ocado float priced at 180p
Wed, 21 Jul 2010, 06:19:00
<b>Ocado</b> has slashed the price at which shares grocery delivery group will be floated following widespread criticism of its initial flotation plans. Shares in the company, which delivers groceries from the supermarket Waitrose, will be floated at 180p, which is at the bottom end of the 180p to 200p range Ocado outlined yesterday. It had previously indicated a price range of 200p to 275p. Analysts had lined up to criticise Ocado's plans to value itself at between £800m and £1.2bn. Analyst Amisha Chohan at HB Markets in a note entitled 'Is this valuation off its trolley?' asked: 'How can a business delivering pre-tax losses of £25 million on revenues of £427 million be valued between £800 million to £1.2 billion?' Ocado has few assets and is yet to make a pre-tax profit, though sales are expected to continue rising. 'We have had extremely positive reactions from investors in the UK, Continental Europe and the US and the fact that our IPO completed successfully in very difficult markets is an endorsement of the long-term growth potential offered by Ocado,' said chief executive Tim Steiner. 'I am looking forward to entering the next phase of growth at Ocado and creating more new jobs and opportunities for Ocado people.'
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