Member Article

Auto Trader issues one billion shares after ‘biggest float of the year’

Manchester-based Auto Trader Group has issued one billion ordinary shares at 150p per share to trading on the London Stock Exchange.

Earlier this month, the online car retailer’s IPO was valued at £2.35bn; the offer comprised 590 million shares at 235p each, representing 59% of the company’s issued share capital.

The proceeds from the IPO, alongside new bank facilities and existing cash will be used to repay the retailer’s outstanding debt.

Financial news website, This is Money has called Auto Trader’s offering “London’s biggest float this year,” as shares soared 10 per cent to 273.7p in early trading.

Autotrader, which was founded in 1977 by John Madejski, the late owner of Reading Football Club, now receives 35 million visitors per month.

At the time of floatation, Auto Trader’s chairman, Ed Williams, said: “Auto Trader has been the place people think of to buy or sell their next car for generations.

“Early and sustained investment in the internet and digital technologies has allowed our customers to benefit from the advantages of the internet, whether it is car buyers finding the widest possible range of currently available vehicles, or car sellers reaching the largest number of potential buyers.

“I would like to thank all those who have contributed to this transformation in how vehicles are bought and sold.

“As one of a handful of long-standing UK companies to have become a household name in the digital world, now seems the ideal time to join the UK stock market.

“This represents another step in ensuring that Auto Trader can serve future generations of vehicle buyers and sellers.”

Auto Trader is the latest in a long line of pre-General Election flotations, including Doncaster-based discount sofa retailer DFS and Lancashire-based Revolution Bars.

This was posted in Bdaily's Members' News section by Ellen Forster .