Old investors in The Hut Group sell a further £250 million of stock amid huge demand

Jim Armitage
·1 min read
The Hut Group sells brands such as Myvitamins (The Hut Group)
The Hut Group sells brands such as Myvitamins (The Hut Group)

Private equity groups Balderton Capital and West Coast Capital sold nearly £240 million of shares in ecommerce star The Hut Group today amid huge demand for the company’s shares since last year’s blockbuster float.

London-based Balderton sold 27 million shares for £205.2 million and West Coast Capital Assets sold 4 million for £30.4 million in a secondary issue of shares, the company said today.

Other shareholders who were big backers prior to the IPO also sold, taking the total of shares changing hands up to £250 million.

The sales were made due to exceptional demand from the market. Institutional investors had been keen to get access to more stock, so the big pre-IPO investors agreed to sell more.

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In a statement outlining the sale plan last night, IHG said it was hoping its shareholders would sell around £200 million of stock, but the issue was seven times oversubscribed, so they sold an extra £50 million.

All were priced at 760p a share.

Balderton has made outstanding returns on its investments in the health and beauty retailer, which also runs web operations for third party retailers.

The sale marked a temporary lifting of Balderton and West Coast’s 360 day “lockup period”, during which they are banned from selling stock.

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