MusicMagpie will become the latest online platform to confirm plans for public listing on Friday when it enters the London Junior Stock Market.
Sky News has learned that the “ recommerce ” site, which specializes in the resale of used consumer technologies such as smartphones and game consoles, is due to publish details of a placement and a proposed admission to AIM following fruitful discussions with potential investors over the past fifteen weeks.
Sources in the city said musicMagpie is expected to seek a market cap of around £ 200million.
The company’s initial public offering (IPO) will add it to an unprecedented wave of tech companies selling shares on the London stock markets, with Trustpilot, Moonpig and Deliveroo all floating so far this year and THG – owner from The Hut Group – last fall. .
Darktrace, the cybersecurity company, has confirmed its intention to list, while the Wise payments app is expected to follow suit before the summer.
MusicMagpie, which was launched in 2007, pays consumers for the unwanted products it may resell.
Led by founder Steve Oliver, it claims to recycle 95% of the products it acquires and uses parts from the remaining 5% to refurbish other items.
Its environmental record means it should qualify for the London Stock Exchange’s Green Economy Mark upon admission of its shares, which rewards companies making at least half of their income from products and services that contribute to the development program. sustainable.
To bolster its credentials as a public company, musicMagpie has appointed Martin Hellawell, founder and chairman of listed IT infrastructure company Softcat, as chairman.
MusicMagpie has established itself as the world’s largest third-party seller in Amazon Marketplace history, garnering 10 million global reviews on the online retail giant’s platforms.
It also claims to be the world’s largest seller in eBay history, while selling direct to consumers through its own online stores.
The company has benefited from consumers’ desire to declutter their homes during the COVID-19 crisis, while helping them generate cash flow during tougher economic times.
It trades under the Decluttr brand in the United States.
Existing shareholders, including private equity firm NVM, are expected to sell part of their stakes during the IPO.
According to insiders, earnings before interest, taxes, depreciation and amortization fell from £ 2.6million in the fiscal year ended November 2018 to around £ 13.9million as of November 30, 2020.
MusicMagpie would see significant growth potential in a new smartphone subscription and rental service, as well as a kiosk concept introduced in Asda and Co-op supermarkets that allows sellers to recycle their phones for instant cash payments. .
The IPO is led by investment banks Peel Hunt and Shore Capital.
A spokesperson for musicMagpie declined to comment on Thursday.