ONLINE grocer Ocado kicked off its battle to win over a sceptical City – amid claims that it was worth less than half its £1bn-plus flotation value.
The firm’s listing plans have raised eyebrows among analysts as it has yet to turn a profit since being launched more than 10 years ago.
Ocado said that shares will be priced at between 200p and 275p each – giving a mid-point valuation of £1.18bn when the company’s plans to raise £200m from new shares are included.
But Ambrian analyst Philip Dorgan said a fair valuation would be less than £500m.
He said: “It’s losing a lot of money, but more importantly it’s consumed a lot of cash and will consume even more over the next five years.”
The listing is expected to earn Ocado a place in the FTSE 250 Index.