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Ocado mulls flotation to milk upturn in market
17.06.09
ONLINE supermarket Ocado could take advantage of improving market conditions by floating on the stock market as early as next year.
The company recently moved into profit on an operational basis, though it has racked up losses of £200 million since its inception in 2002, prompting Tesco chief executive Sir Terry Leahy to call it a charity.
A float would allow around 100 shareholders to cash in on their investment.
But the main beneficiaries would be the three founders - former bankers Tim Steiner, Jonathan Faiman and Jason Gissing, who stand to get a combined £130 million, based on a recent estimate valuing the business at £600million. The biggest shareholder is Waitrose.
Chief financial and marketing officer Gissing said: "We are thinking about it. There is an opportunity to do something interesting.
"I don't want to sound conceited, but the business is doing well."
Reader views (2)
Well, today Ocado are three hours late on delivering my order and counting.... How these jokers can ever hope to float is beyond me!! Please sort out your rubbish service first....
- Nick, Battersea
Ocado established almost ten years ago and has only just become profitable - at operating level. The company is, presumably, still making a net loss after all this time. Hardly a model of 'doing well'? Leahy is right. It's a labour of love from those cuddly 'right-on' people over at Waitrose.
- Kevin Lynch, Dublin
