Thursday 18 January 2018

Hostelworld valued at €245m after initial public offering

Pic: Deposit Photos
Pic: Deposit Photos
Michael Cogley

Michael Cogley

Hostelworld, the Irish-based hostel-booking company, announced the pricing of its initial public offering (IPO) which values it at €245m.

The shares were listed yesterday on both the London Stock Exchange and the Irish Stock Exchange with a price set at 185p per share.

Hostelword expects that the offer, which will see 71,718,432 shares listed, to raise £125.4m (€173.7m) in net proceeds.

The company also said that after the offering 19.8pc of its issued share capital would be held by private equity giant, Hellman and Freidmann, the company that founder Ray Nolan sold to in 2009.

The chief executive officer at Hostelworld, Feargal Mooney, said that the company is looking forward to its public future.

"We are delighted to have reached this milestone in Hostelworld's development and welcome all new shareholders," he said.

"The IPO will further raise our already strong brand awareness in our growing and worldwide marketplace, enhance the group's profile with investors, business partners and customers and enable access, should it be required, to capital markets to support future growth.

"We look forward with confidence to our future as a public company," Mr Mooney said.

Shares rose to 198.75p during mid morning yesterday, before levelling off to 198.25p in the afternoon, up 7.4pc on its initial price.

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