Luxury Retailer Farfetch Hires Bankers for Upcoming Initial Public Offering
- Farfetch hires JP Morgan and Goldman Sachs bankers for IPO
- Estimated value of £4bn
- Not yet profitable, posted losses of £35.4m in 2016
- Partnership with Harvey Nichols announced
- Previous partnerships with luxury brands like Burberry and Chanel
Online luxury retailer Farfetch is gearing up for an initial public offering (IPO) with a valuation of around £4bn, after hiring bankers from JP Morgan and Goldman Sachs. Founded in 2008, Farfetch enables nearly 900 boutiques and luxury brands to sell their designer products to approximately two million customers across 190 countries. Despite posting losses before tax of £35.4m for the year ending December 31, 2016, the company’s estimated value is close to Marks and Spencer’s current market valuation. The IPO has been in the works for almost two years, with CEO and founder José Neves stating that going public would be the next financial milestone. The announcement of a partnership with luxury department store Harvey Nichols follows previous collaborations with brands like Burberry and Chanel. Natalie Massenet, co-chair of Farfetch’s board, called the Harvey Nichols tie-up a ‘strategic milestone for both companies and a win for their global customers.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Farfetch’s IPO plans, its partnership with Harvey Nichols, and its current estimated value. It also mentions its previous partnerships with luxury brands like Burberry and Chanel. However, it lacks some details on the specifics of the IPO and financial performance beyond mentioning losses before tax.
Noise Level: 3
Noise Justification: The article provides relevant information about Farfetch’s IPO plans and its partnership with Harvey Nichols, but lacks in-depth analysis or exploration of long-term trends or consequences of these events.
Financial Relevance: Yes
Financial Markets Impacted: Farfetch’s IPO will impact financial markets as it is a significant event for the company and the luxury retail sector.
Financial Rating Justification: The article discusses Farfetch’s plans for an initial public offering (IPO) which will have an impact on the financial markets, as well as the company itself. It also mentions its partnership with Harvey Nichols and other luxury brands, highlighting its role in the luxury retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There are no extreme events mentioned in this article.
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