Recommerce business musicMagpie is set to raise £110m when it lists on the Alternative Investment Market (AIM) next Thursday. The business, which advised it intended to float back in October, employs around 10000 staff in Stockport and in Atlanta, GA. The placing will see selling shareholders receive £95m and the company £15m.
The company which buys in pre-owned tech products from consumers which it refurbishes as required and sells on, will have a market value of £208m at its AIM debut.
Founding CEO & shareholder Steve Oliver said: “We are thrilled that musicMagpie’s circular economy model has resonated so strongly with investors, and are delighted to have received such a high level of demand for the placing. 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.”
musicMagpie says that the market for pre-owned consumer technology and physical media is worth approximately £9bn in the UK and US – and the former product category is expected to continue to grow at more than 10 per cent a year. The business achieved revenues of £153.4m for the year to November 202 with EBITDA of £13.9m.
It has launched a smartphone subscription/rental service, what it calls SMARTDrop which is for selling phones in ASDA and Co-op branches, and Magpie Circular – a new recycling service for businesses.
The business had also trialled a recycling service for branded clothing some years ago but decided to stick with a focus on ‘phones, tech and gaming products.