The posh sofas and tables seller set the IPO price of 200p per share, the bottom of its mooted 200-265p range, but was changing hands for as low at 185p in early trades.
The offer, which values the design furniture retailer at GBP775mln, which was already a bit of a disappointment after pre-listing expectations for the market cap to reach GBP1bn.
Independent retail analyst Nick Bubb called the initial performance “a bit of a flop”.
The offer included 50mln of new shares, raising GBP100mln for the company, and 46.9mln shares to be sold by existing shareholders for a total offer size of GBP193mln.
An extra 14.5mln shares will be available by some selling shareholders as part of the over-allotment option, which would increase the total offer to 111.5mln shares in total and 29% of the company.
“Our successful track record in the UK and internationally has been made possible with the foundations that we have built over the last eleven years – a unique combination of a well-recognised brand, a proprietary, data-driven platform, and a bespoke, vertically integrated supply chain connecting our network of designers, artists and collaborators with our customers,” said Philippe Chainieux, Made’s chief executive.
“A listing in London, where the business was founded, will enable us to accelerate our growth as we lead the development of the online furniture and homewares market as it moves online, both in the UK and internationally.”
The cash will be used to accelerate its growth in existing markets, improve service through a reduction of lead times offered to customers, scale its homeware range and give the group increased working capital flexibility.
Founded in 2010, Made styles itself as “the leading digitally native lifestyle brand in home”, with local websites in the UK, Germany, Switzerland, Austria, France, Belgium, Spain and the Netherlands.
In the first quarter of this year, around 48% of gross sales were generated from orders outside of the UK.
Sales were up 63% on the preceding quarter, with the homeware division’s growth outstripping that of the furniture division.
From 2015, gross sales in the UK grew at a compound annualised growth rate (CAGR) of 28% from GBP48mln to GBP165mln in 2020. Sales in Continental Europe grew at a CAGR of 49% over the same period from GBP21mln to GBP150mln.
–Adds analyst comment, share price–