Ferd invests in Boozt on its stock exchange debut
Ferd’s participation in Boozt’s IPO as a cornerstone investor is the first time it has played such a role in Sweden. Participating as a cornerstone investor gave Ferd the right to subscribe for SEK 200 million of shares. When Boozt listed in Stockholm at the end of May, the company achieved a valuation of SEK 3.4 billion, giving Ferd a 5.8% stake in the company.
Prior to its IPO, Verdane Capital and Sunstone Capital controlled just over 51% of the company, with the rest owned by Ecco, Friheden Invest and Sampension, as well as by the company’s management and other employees.
In profit in 2016
The e-commerce company Boozt sells fashionable clothes via Boozt.com. The company’s site has up to 5 million visits every month and over 860,000 active customers.
“The company primarily targets the Nordic market, and it derives approximately 90% of its revenue from this region”, explains Julie Wiese, an Associate at Ferd Capital.
The online retail company has grown strongly over the last few years, achieving annual growth of nearly 70% in 2015 and 2016. It reported revenue of nearly SEK 1.4 billion in 2016, which was the first year it was in profit, with its operating profit for the year totalling SEK 29.5 million.
Boozt offers its customers selected brands in the mid to premium segment, with 550 different brands represented, including Ralph Lauren, Gant, Day Birger et Mikkelsen, Tiger of Sweden, Tommy Hilfiger, Boss and Ganni.
“Instead of offering a very wide selection, Boozt has focused on selected brands that are suited to Nordic consumers’ preferences. Its target market is women and men aged 25-54 living in Norway, Sweden and Denmark, representing an affluent customer group that is rapidly moving to online shopping”, comments Julie Wiese
A technology company
The company describes itself as a technology company that sells fashion online. At the start of the year it had nearly 200 employees from 25 countries, who together represent broad expertise in clothing, logistics, IT and communications. Julie Wiese describes Ferd’s investment in Boozt as a very exciting way of gaining exposure to ecommerce.
“The total size of the market for online fashion and clothing in the Nordic region is very attractive. Nordic consumers are among the biggest spenders per capita on shoes and clothes in the world. In addition to the fact that the underlying market is growing, online spending as a proportion of overall spending is also increasing significantly. Boozt’s exposure to this market and growth potential in combination with its very experienced management team, proprietary IT platform and efficient ordering and warehousing management processes mean that the company is a very attractive investment opportunity for Ferd”, explains Julie Wiese.
The entire article is available (in Norwegian) here.
TEXT: IRINA LEE