The arrival of mattress specialist Eve Sleep (EVE) to Aim marks the first retail float of the year. The business, which current chief executive Jas Bagniewski helped to found, is only two years old. However, it has successfully disrupted the way in which consumers purchase mattresses - and now pillows, fitted sheets and other accessories.
According to Mr Bagniewski, the existing market for these products was overly complex and Eve's mission isn't just to simplify choice (the company only offers one mattress product that it manufactures itself), but also the shopping experience. "The store-based model is effectively broken," says Mr Bagniewski, with customers putting off mattress purchases for years to avoid hours browsing high-street shops and their extensive ranges before making a choice.
Through Eve, customers buy a foam mattress online for £399 and in so doing sign up for a 100-day trial of the product. Delivery is free, as are returns if customers are unsatisfied with their purchase once the 100 days are over. According to the company, around 95 per cent of customers choose to hold on to their mattress, which is also protected by a 10-year guarantee.
Although young, the company has been bolstered by some high-profile management appointments. Paul Pindar - previously chief executive of FTSE 100 company Capita and a founder investor in online estate agent Purplebricks - acts as the company's chairman, while Neil Woodford was an early investor. Mr Bagniewski himself also served in senior management roles at Groupon and online fashion store Zalando.
The float did not comprise a retail element for private investors, but the company successfully raised £35m with London institutions. That, along with an IPO price of 101p a share, handed the group a market capitalisation of around £140m. Of the £35m raised, most will go towards the company's expansion plans in Europe, with operations already up and running in 10 countries. According to Mr Bagniewski, expanding into Europe made sense. Consumer trends and patterns across the continent are similar to those seen in the UK, and the sleep market remains significantly underserved - particularly for modern-minded consumers, he said. The European mattress market has been valued at around £5bn, although the wider sleep market is worth closer to £21bn.
