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Financial comparison website has been valued at £1bn in advance of the planned share offering on July 31.

The FT reports that Moneysupermarket plans to sell around 40% of the company's shares to pay off debts and release capital. Shares will be priced at between 170p and 210p.

Co-founder Simon Nixon is expected to make up to £200m from the flotation. Earlier this year, he paid £162m for co-founder Duncan Cameron's stake in the firm.

Moneysupermarket.com is the largest financial comparison site in the UK, with around 4m users and a 49% share of the market. Last year's turnover was £104.5m, up from £68m in 2005. The site attracted 64m visitors in 2006.

The company operates two sites, moneysupermarket.com and travelsupermarket.com, with a combined 64m visitors and 523m page views last year. The firm's directors and staff will retain 50% of the equity after the flotation.  

Rival comparison website Confused.com is reckoned to be worth around £600m, and Admiral has recently received several approaches from interested buyers.

Graham Charlton

Published 11 July, 2007 by Graham Charlton

Graham Charlton is the former Editor-in-Chief at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+

2565 more posts from this author

Comments (1)

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Naveed

I've just spent a few minutes researching this IPO, having come accross the advert on their website to subscribe to the offering.

Looking at the prospectus, I calculate a P:E multiple of about 8.5, that's based on 2007 1Q published earnings and assuming the float represents 40% of the company. Now, as I recall from the dotcom boom time, the vast majority of B2C companies didn't even have an operating profit to show, let alone a respectable PE ratio. This puppy has real profits to show for it's last few years of operations, and 40 - 50% year-on-year revenue growth from 2005 - present. The business model is predicated on the growth industry of the time, online advertising, robbing traditional media of it's revenue and bolstering the viability of B2C content models that just weren't viable in the pre-broadband, low internet penetration dotcom era.

Seems to me like a good buy based on that analysis.

On the downside that 40- 50% revenue growth is going to be hard to sustain, and one can predict a big drop in share price the first time they come in below that lofty expectation. The likely scenario is a buyout before then, IMHO.

Just my two penneth worth, please do your own DD before subscribing.

over 9 years ago

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