Trustpilot gets $1.5bn valuation in London IPO

Lucy Harley-McKeown
·2-min read
London Stock Exchange. Photo: Andrew Winning/Reuters
London Stock Exchange. Photo: Andrew Winning/Reuters

Consumer reviews website Trustpilot said on Tuesday that its London Stock Exchange Initial Public Offering (IPO) will come in at 265p-per-share, valuing the company at £1.1bn ($1.5bn).

This was the top end of the firm's indicative price range, meaning it has raised £473m through the sale of 161 million shares. It had been valued at $1.4bn earlier this month.

Conditional dealings in the shares commenced on the London Stock Exchange at 8am London time on Tuesday under the ticker "TRST," jumping on the opening bell to raise $655m (£472m).

Trustpilot confirmed its intention to float in March, following an announcement that it was on the cusp of applying. It said that full details of the offer will be included in the prospectus.

The company has already secured commitments from investors including Fidelity, Adelphi, BlackRock (BLK) and Janus Henderson (JHG) to raise a total of $240m through the initial public offering earlier this month. At the time, the funding boost gave Trustpilot a post-money valuation of $1.4bn.

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About $50m-worth of new shares will be issued in the IPO alongside the sale of shares by existing investors, directors, and employees. The company, directors, and staff will agree to a post-float lock-up period during which time they will be unable to offload any further shares, Trustpilot said.

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Morgan Stanley (MS), JP Morgan (JPM), Berenberg, and Danske Bank (DANSKE.CO) are all working on the float.

The pricing comes hot on the heels of details of food delivery company Deliveroo's IPO. Yesterday, it said it would aim for a market cap of £8.8bn in London, setting the price range between £3.90 and £4.60 per share.

It also comes as UK chancellor Rishi Sunak is poised to change rules to allow founders to maintain control of their companies despite selling shares on the stock market.

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The change is a bid to convince more high-growth tech businesses and "blank cheque," also known as SPACs (special purpose acquisition companies), to list shares in London.

The push to modernise the UK's public markets comes amid concerns that the UK is falling behind other international markets, notably the US.

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