MySale slides on market debut

MySale, the online fashion sale site backed by tycoon Sir Philip Green, has plunged on its stock market debut after an error in the pricing of its stock.

MySale is backed by Sir Philip Green
MySale is backed by Sir Philip Green

The site, which sells fashion and beauty products at sale prices, began trading at 226p today but slumped as low as 166p amid confusion over its listing price.

The Australian business, founded in 2007 and run by two British-born brothers, was forced to issue a market statement saying its Aim-flotation was in pence, but it had mistakenly traded today in pounds.

On trading screens this made its 226p price appear as 2.26, which triggered automatic selling of the stock.

The firm, which raised £40 million from its flotation, said it would continue to trade shares throughout the day, and would reprice its shares in pence tomorrow.

MySale is a flash sale website, which means that it sells sale items to its 10.8 million members over a limited time scale.

The business, which employs 500 staff, has agreements with over 2,500 brands and retailers who sell surplus or out-of-season stock on MySale's websites.

Topshop owner Sir Philip owns a 22.1% stake in the business, through his wife's offshore investment firm Shelton Capital.

It is the first time the billionaire has been involved in a quoted business since 1988, when he was chairman and chief executive of discount retailer Amber Day.

MySale is run by vice-chairman Jamie Jackson who founded the business seven years ago in Sydney. His brother Carl, who joined two years later, is chief executive. Both brothers were born in Rutland.

The business launched country specific versions of its website in the US, Hong Kong and South Korea in May, and plans a UK version in the second half of 2014.

The firm already has a distribution site in Corby.

MySale said it will use the cash it raised to search for acquisitions, upgrade existing warehouses, and to boost its marketing budget in a bid to attract more members.