Boohoo valued at 560m for IPO

Online fashion retailer Boohoo has confirmed it will float on the London Stock Exchange later in the month, valuing the firm at £560 million.

The company revealed that shares will be on sale to the public for the first time from next Friday (March 14th).

Boohoo has a core market of 16-24-year old consumers and has become one of the world's leading online fashion retailers in the last few years.

The firm announced in a statement that it is aiming to raise gross proceeds of approximately £300 million. It was noted that £50 million of this will be used to accelerate the expansion of the company, as well as to enhance its working capital base.

It said: "A proportion of the money raised will be used as part of a multi-stage development plan to grow the company's distribution facilities and repay the outstanding mortgage on its Burnley warehouse, in addition to funding the infrastructure and IT systems to support future international growth."

The London Stock Exchange is also preparing for the initial public offerings of Poundland and Pets At Home in the coming weeks.

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