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Ocado seeks £1 billion valuation
Ocado, which delivers Waitrose groceries, is looking at selling shares between 200 pence to 275 pence, with loyal customers getting the option to buy a stake.
Markets
Online grocery business Ocado is pushing ahead with its planned stock market flotation, seeking a valuation of more than £1 billion despite never having made a profit.
The business, which delivers Waitrose groceries, is looking at selling shares between 200 pence to 275 pence, with trading to begin on 26 July.
As well as big institutional investors, Ocado will be offering shares to employees and to customers who spent more than £300 with Ocado between 1 January 2010 and 24 June 2010.
Ocado expects its market capitalisation at flotation to be £1,182 million which would make it eligible for inclusion in the FTSE 250 index.
In its announcement to the stock market, Ocado said it would publish its prospectus for the proposed IPO later today.
Ocado, which was launched by three former Goldman Sachs bankers in partnership with Waitrose in January 2002, launches into turbulent markets and scepticism in the City.
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7 comments so far. Why not have your say?
Anonymous 1 needed this 'off the record'
Jul 06, 2010 at 11:03
If big institutions are considering buying they must have more money than sense or perhaps there's something in the deal we can't have.
report thisRon
Jul 06, 2010 at 11:43
Grocery busines, sounds more like a con merchant
report thisAnonymous 2 needed this 'off the record'
Jul 06, 2010 at 13:05
Never made a profit, and not likely to until 2012...why oh why would one invest in this? The Ambrian analyst put it well Ocado starts with an O ends in and O and has profits of O. And they wonder why there was a banking crisis
report thisJohn Coles
Jul 06, 2010 at 13:52
.......and Michael Grade, the Serial Business Failure, is Chairman. Who the hell would put money into such a fantasy business?
report thisRob Morrison
Jul 06, 2010 at 22:41
Don't understand the valuation, given the historical performance, as per previous comments.
Having said that, the FTSE performance today, is the result of what? This given the decline of the past few days. I'm confused, so maybe OCADO will be an investors' dream.............still don't think so!
report thisRobert Taylor
Jul 10, 2010 at 13:32
Personally I would leave Ocado alone. They are heavily in debt not only to the banks but to John Lewis, whom they naturally depend upon. For years JL have been pushing for a return on their large investment and their patience must be running a little thin, on top of which they of course have their own delivery service operating out of their stores in direct competition to Ocado. The actual assests of Ocado are non existent. Warehouses are operated by other companies, the fleet is leased. They could realistically fold overnight if the plug was pulled... don't go down the plug hole with them,!!!
report thisBunny
Jul 11, 2010 at 17:32
Anyone interested in "investing" in this should examine the US equivalent from the last decade; WebVan. Clear example of founding investors cashing in. Just because it's got a big price, doesn't make it valuable.
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