Trustpilot's shares rise in London debut

·2-min read

By Carolyn Cohn and Abhinav Ramnarayan

LONDON (Reuters) -Shares in online reviews platform Trustpilot rose 14% in their stock market debut on Tuesday, adding to a spate of initial public offerings (IPOs) by technology companies in Europe that have met an enthusiastic reception from investors.

The British tech company had earlier priced the IPO at 265 pence per share, giving it a market capitalisation of 1.08 billion pounds ($1.49 billion), but the stock opened up 14% at 300 pence.

Like many other tech and e-commerce related businesses, Trustpilot's business has grown during the pandemic.

It currently manages reviews for more than half a million web domains, has 19,500 paying customers and adds more than 12,000 new domains every month, according to chief executive and founder Peter Holten Muehlmann.

The strong performance bodes well for food delivery company Deliveroo, which could make Britain’s biggest stock market debut in nearly a decade later this month, after setting a price range on Monday that values it at up to $12 billion.

Trustpilot's pricing came in at the top end of the firm's indicative price range, meaning it raised a total of 473 million pounds through the sale of 17.6 million new shares and 161 million shares from its existing owners.

A further 26.8 million shares are being made available by some existing shareholders in an over-allotment option.

The deal would be the third major London listing so far in 2021, with classic boot brand Dr Martens and online card retailer Moonpig completing IPOs earlier this year.

Moonpig's shares are still up 20% from their listing price, reflecting healthy investor demand for e-commerce and tech companies, both in the UK and in Europe, as the continent plays catch up to a tech listing frenzy in the United States.

JPMorgan and Morgan Stanley are global coordinators on the Trustpilot deal and bookrunners along with Berenberg and Danske Bank.

($1 = 0.7224 pounds)

(Reporting by Carolyn Cohn and Abhinav Ramnarayan, Additional reporting by Danilo MasoniEditing by Rachel Armstrong)

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