On the Beach valued at £240 million as it completes London Stock Market IPO

On the Beach valued at £240 million as it completes London Stock Market IPO

On the Beach today confirmed plans to raise more than £90 million through an initial public offering valuing the online travel agent at £240 million.

The company is understood to have pared back its valuation from about £270 million to £240 million amid resistance from institutions to the higher price tag, The Times reported.

A City source told the newspaper: “Given what’s been happening in the markets, it was inevitable that institutions would demand a haircut, but it’s a more than decent valuation for a quality company with strong growth prospects.”

On the Beach, which considered a listing last summer, was founded 11 years ago by chief executive Simon Cooper from his terraced house in Macclesfield.

He remains chief executive and a significant minority shareholder with management in a company with one million customers and gross revenues last year of £360 million.

More than 52 million shares in the Cheadle-based group are being placed at a price of 184p per share.

Of the £90.2 million of proceeds, £6.4 million is going to the company and £83.8 million to selling shareholders including private equity firm Inflexion, directors, members of the senior management team and others. 

Inflexion will retain at 37.1% holding in the company after the listing, with the management holding 21.7%.

Cooper said: “In a little less than 11 years, we have established On the Beach as one of the UK’s leading online retailers of beach holidays.

“Our highly differentiated business model and superior technology platform has been core to the success of the business. 

“The IPO of On the Beach marks an exciting milestone in the company’s development and will support us in our ambition to become Europe’s leading online retailer of beach holidays.

“We welcome our new shareholders and, with their support, look forward to delivering the next chapter of our growth story.”

Shares in On The Beach started trading this morning at 8am under the ticker OTB with an offer price of 184p per share.

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