(By Vikas SN & NT Balanarayan) Online fashion retailer Koovs plc (Koovs) closed at 184 pence per share on the day it made its debut on London's AIM exchange, up 22.67% from its issue price of 150 pence. It opened at 180 pence per share, up 20% from issue price and during the day it went up to a peak of 190 pence per share, up 26.7% from the issue price and a low of 169 pence, still 12.7% higher than the issue price. At the time of writing this article, it is trading at 193 pence, a 28.7% increase from the offer price. Through this IPO, Koovs has raised £22 million by offering 24,110,719 ordinary shares of 1 pence each at an issue price of 150 pence each, which represents for 60.8% of the company's total issued share capital. After deducting underwriting discounts and other expenses, Koovs gets around £20.4 million from the offering. At 184 pence per share, its 24,110,719 shares would value the company at £44.36 million, up from its pre-IPO market cap of £36.2 million. However, note that the value of the holding will change with market fluctuations. Capital Utilization From the funds raised, Koovs plans to use approximately £16.5 million to subscribe for 165,986,056 ordinary shares of Koovs India (Koovs Marketing Consulting Private Limited), which represents 57.5% stake in the company, thereby valuing Koovs India at £28.7 million. The company notes that the new investors at the IPO will own 35% stake of Koovs India on a see-through basis (Read more on Koovs restructuring and shareholding here). The rest of…
