Trainline IPO: Group looks to raise £75m

Trainline.com, the biggest UK online retailer of rail tickets, has unveiled plans to raise £75 million through an initial public offering (IPO) on the London Stock Exchange next month. The news of the Trainline IPO follows Uber Technologies’ (NYSE:UBER) recent disappointing market debut.

Trainline IPO confirmed

Trainline announced in a statement yesterday that it was planning to proceed with an IPO, with admission expected to occur next month. The company said that the offer, aimed at raising gross proceeds of about £75 million, will comprise new shares, as well as existing stock expected to be sold by certain existing shareholders, directors and employees.  Immediately following admission, the company intends to have a free float of at least 25 percent of its issued share capital.

The BBC noted in its coverage of the news that while the valuation will not be known until the shares are priced nearer the time of the listing, it is expected to be one of the biggest UK flotations of the year. People briefed on the matter, however, told the Financial Times last week that the company was targeting a valuation of £1.5 billion. The newspaper further noted that Trainline plans to use the proceeds from its upcoming float to support its growth by boosting its public profile and provide it with a base of long-term shareholders.

‘Very natural next step’

“It’s a very natural next step for the business and an IPO would be helpful for us in attracting and retaining great talent,” Trainline’s chief executive Clare Gilmartin told City A.M. last week.

This, however, is not the first time that the company has explored a London listing. The online tickets retailer was planning a float back in 2015, but the plans were scrapped after KKR agreed to buy the company for about £500 million.

JP Morgan Cazenove and Morgan Stanley are leading the Trainline IPO.