France-based e-commerce company Showroomprive, backed by online discount retailer Vipshop, has secured €256m ($282m) in proceeds from its initial public offering on Euronext Paris, Reuters reported on Friday.
The shares traded at $19.25, below the target range of $21.50 to $29m, and valued the company at $726m. Showroomprive had hoped to raise up to $339m in the offering.
Vipshop bought $34m worth of additional shares, as previously announced. The proceeds could still rise to $319m if underwriters decide to fully exercise their overallotment option.
Founded in 2006, Showroomprive sells designer fashion items, homewear, toys and electronics to consumers through flash sales that offer discounts of up to 70%. The company is currently active in seven European countries and hopes to expand into Germany in the near future.
Goldman Sachs and Deutsche Bank are acting as joint global coordinators and bookrunners for the flotation. BNP Paribas and Société Générale are joint bookrunners, while Rothschield & Cie is serving as financial advisor.