MusicMagpie PLC (LON:MMAG), the online buyer and seller of second-hand technology, will float on AIM next Thursday at 103p a share.

The eCommerce platform operator’s current owners are set to cash in around £95mln of shares through an initial public offering that is expected to value the company at £208mln.

Following the flotation, directors and senior management will own around 11.5% of the company’s issued share capital while the free float – the proportion of shares not owned by committed long-term holders – will be 53%.

The company will raise £15mln in fresh capital in the flotation that it will use to pay down debt and boost working capital.

The company announced its intention to float just over a week ago and has now fleshed out the details.

Music Magpie, which sells mobile phones, tablets, games consoles, smartwatches, DVDs (ask your Dad) and CDs (ask your Granddad) on its site, chalked up revenues of £153mln in the year to the end of November 2020.

Underlying earnings (EBITDA) totalled around £13.9mln, compared to EBITDA of just £2.6mln two years earlier so the group’s “re-commerce” schtick certainly seems to have captured the zeitgeist.

The firm was founded in Stockport in 2007 and as well as its UK site it has a US branch operating under the Decluttr brand.

Co-founder Steve Oliver reckons people in the UK alone are sitting on around £16.5bn worth of technology they no longer use.

Well, it’s cheaper than buying a new sofa and sitting on that …

“Only a small percentage of consumer technology items are currently recycled. The listing on AIM reflects not only the success that we have enjoyed to date but also our confidence in our ability to capitalise on the favourable long-term trends that continue to drive the company’s strong performance.” Oliver said.

“Given the ongoing move to tackle the growing problem of e-waste and the fact that consumer attitudes towards buying refurbished consumer technology products are rapidly changing, we believe that there is significant potential for MusicMagpie’s future growth prospects,” Oliver added.

The flotation is another in a lengthening chain of technology companies going public; Trustpilot, Moonpig and Deliveroo have floated in London so far this year while cybersecurity outfit Darktrace has announced plans for an initial public offering.

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