The French footwear and fashion e-retailer Spartoo raised a gross €23.7 million through the issuance of new shares sold in an initial public offering (IPO) that completed on July 2. Based on the midpoint of its price range, the company was expecting gross proceeds of about €25 million, or €22.2 million after excluding the cost of the IPO.

The price of the 3,636,363 new ordinary shares was set at €6.53 each, at the lower end of the price range of €6.53-€7.22. Demand by investors totalled €35.8 million, prompting existing shareholders to sell an additional 545,454 shares, also at €6.53 each, resulting in the size of the IPO rising to €27.3 million. If the overallotment option is wholly exercised by Aug. 6, the size of the transaction would increase to €31.4 million.

Following the IPO, Spartoo has a free float of 21 percent, which could widen to 24 percent if the overallotment option is fully exercised.

Spartoo’s shares started trading July 7 on the Euronext Growth segment of the Paris stock Exchange. On July 9, they closed at €6.33, 3.1 percent below the IPO price and representing a market capitalization of about €115 million.

Spartoo has reported a positive Ebitda since 2014. Between 2008 and 2020, gross merchandise value (GMV) grew by a compound annual average of 23 percent to reach €194 million last year, 39 percent of which was generated internationally. It sells some 700,000 items from 8,000 brands in over 30 countries in Europe. In 2020, sales amounted to €134 million.

The company also has 16 proprietary brands, 10 of which were created in-house and the rest obtained through acquisitions such as the French shoe company JB Martin bought last year and GBB, a French brand purchased in 2017 that makes shoes for children. Last year, Spartoo sold 5 million pairs of shoes.

Between 2021 and 2024, Spartoo is aiming to achieve compound annual growth in GMV of at least 15 percent and targets an Ebitda margin of around 7 percent in 2024.