CMO Group price jumps as it lists on AIM
CMO Group, the UK’s largest online-only retailer of building materials, has enjoyed a successful start to life as a publicly traded company after listing on the AIM market of the London Stock Exchange on Thursday 8th July 2021.
Previously known within the merchant sector as CMOstores.com, the company’s share price has leapt to over 160p , more than a 20% per cent premium to the 132p placing price during the few days since trading began (initial £95 million market capitalisation).
CMO raised £45m in a placing of which £27m will be used to further develop and disrupt the traditional, predominantly offline, builders merchant market where online penetration is currently only 4 per cent of a £27bn market.
Commenting on the success of the company’s listing chief executive Dean Murray said:
“This has been a landmark moment in the history of CMO. The business has grown rapidly, taking advantage of its innovative and differentiated model, providing a generation of internet-savvy customers with the broadest range of products as highly competitive prices, delivered when and where they need them.”
With a customer base including both homeowners and tradespeople, CMO owns seven building materials retail online ‘superstores’ selling roofing, windows, doors, insulation drainage, and tiles. At the end of 2020, the Group acquired Ipswich-based online retailer Total Tiles, taking its range to over 75,000 products; the largest on offer of any retailer.
CMO plans to use the proceeds from its placing to support long-term funding, strategic opportunities as well as further mergers and acquisitions as part of its long-term growth ambitions.