by FoodBizDaily.com staff writer
February 08 2010 - Ocado, the online food retailer that delivers groceries from Waitrose, is said to be appointing advisors over the next two weeks for a stock market flotation, reports claim.
The grocery delivery group, founded by former Goldman Sachs bankers, could float as early as May and it is estimated to reach a valuation of up to £1bn, telegraph.co.uk said.
Goldman Sachs, UBS and JP Morgan Cazenove are seen as frontrunners to lead the float.
However, any listing will depend on market conditions and, if stock market valuations plummet over the next few months the flotation is likely to be pulled.
Goldman Sachs is a shareholder in the group and the John Lewis pension fund, (Waitrose is part of John Lewis), owns a 30% stake in Ocado.
Ocado reportedly saw sales increase by 49% in the week to 26th December 2009 to £8.9m and, over the four weeks to 26th December, sales increased by 30% to £40.8m.
However, the company is yet to make a profit at the pre-tax level.
This latest news follow reports last year that Ocado planned to float some time in 2010.
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Ocado Limited
Address: Titan Ct., 3 Bishop Sq., Hatfield Business Park Hatfield, AL10 9NE GBR
Telephone: +44-1707 227800
Fax: +44-1707 227999
About Ocado Limited
Upscale Internet grocer Ocado serves more than 13.5 million tech-savvy, time-pressed households in Greater London, Hertfordshire, Kent, the Midlands, Surrey, North West, and now the South Coast. Launched by three former Goldman Sachs bankers in 2002, Ocado delivers groceries in Mercedes vans from its supermarket partner John Lewis Partnership-owned Waitrose Limited, which owns about 30% of the company, to the customer's doorstep. Other Ocado investors include the company's directors, who control 25% of the company. The average Ocado order tops about £100, a relatively high price, but the company's ability to turn a profit is still erratic. The Internet grocer has postponed delivery of a planned IPO.