Chancellor of the Exchequer Rishi Sunak is weighing proposals that would give company founders greater control when they list their businesses in the City of
and would make it easier to create U.K. SPACs.
Another U.K. tech startup, Deliveroo Holdings Plc, plans to go public in London
this week, though the food-delivery platform has endured a revolt from investors concerned about how it treats its riders. The company narrowed the price rage for its IPO to the lower half of its initial projections, according to terms seen by Bloomberg.
Online car sales have surged during Covid-19 lockdowns as traditional dealerships were forced to shut, and Cazoo said it expects sales to rise to nearly $1 billion this year, a 300% growth rate. Shares of Phoenix-based Carvana Co., which went public with a similar business model in 2017, have jumped more than 400% in the last 12 months, and it’s made its founders billionaires.
Cazoo, which buys and restores used cars and delivers them directly to buyers, was valued at more than $2 billion after raising funds in October.
The company expects revenues to double annually through 2024, when they’ll reach $8 billion thanks to expansion into Europe, greater inventory of cars and the introduction of new services, Chief Executive Officer Alex Chesterman said in an investor call on Monday. Still, it expects to continue losing money until 2024 when its operating profit and earnings before interest, taxes, depreciation and amortization will turn positive, according to projections in Cazoo’s analyst presentation.
The Daily Mail & General Trust Plc, which owns about a fifth Cazoo, surged as much as 16% in London trading after the announcement. The company said it expects to receive about $1.35 billion in cash and shares when the deal closes, after it invested 117 million pounds ($161 million).
Cazoo had been weighing an initial public offering after the successful listing of its German counterpart, Auto1 Group SE, which raised 1.8 billion euros ($2.1 billion) earlier this year, people familiar with the matter had said.
Cazoo was founded in 2018 by Chesterman, a serial entrepreneur who previously founded property search website Zoopla and early streaming video and mail-order DVD rental service LoveFilm. Investors include BlackRock Inc., General Catalyst, D1 Capital Partners, Mubadala Capital, L Catterton and others.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.