Founders of Boohoo.com take £200m out of the business after the company"s impressive debut on AIM, showing that there"s room to grow

By

Daily Mail Reporter

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The founders of online fashion chain Boohoo.com have taken more than £200million out of the business after it floated on the Alternative Investment Market (AIM).

Chief executive Carol Kane also made £25million, reducing her stake to 4.5 per cent from 9.8 per cent.

The firm, which targets 16 to 24-year-olds with its own ranges of clothing and accessories, saw its shares rise from the 50p offer price to 85p, before slipping back to 70p.

Boohoo: The firm saw its shares rise from the 50p offer price to 85p, before slipping back to 70p

Founder Mahmud Kamani and his family owned an 82 per cent stake but have sold 38 per cent to net £206million.

The business raised £300million from the listing, of which £240million will be go to repay convertible loan notes held by existing shareholders.

Around £50million will be used to accelerate expansion plans and boost working capital.

And 55 per cent of the stock is trading on the public market with Boohoo gaining a market value of about £850million.

It is the latest in a series of retailers to come to market that include Poundland, Pets at Home and newsagent McColls.

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Founders of Boohoo.com take £200m out of the business after the company"s impressive debut on AIM, showing that there"s room to grow