September 27, 2018 / 6:53 AM / 19 days ago

UPDATE 2-Westwing sets IPO price range, seeks to raise 132 mln euros

* Home and living company sets IPO range at 23-29 euros

* Taps into trend blending lifestyle, e-commerce

* Westwing founded by former Elle journalist Delia Fischer (Adds context)

By Douglas Busvine

FRANKFURT, Sept 27 (Reuters) - Westwing, the "home and living" company backed by Germany's Rocket Internet, said on Thursday it had set the price range for its planned initial public offering at 23 to 29 euros per share.

The company, founded by former Elle journalist Delia Fischer, is seeking to raise 132 million euros ($154 million) in the offering of new shares as it taps into the desires of aspirational consumers - mainly women - with its online shopping club concept.

Westwing is part of a wider trend that blends lifestyle and e-commerce and features companies like Hollywood actress Gwyneth Paltrow's Goop, and online luxury fashion retailer Farfetch , whose recent float drew strong interest.

The company, 30 percent owned by Rocket Internet, will make a primary offering of 4.4 million shares. An additional 0.66 million shares will be made available to cover any potential over-allotments, supported by a securities loan from Rocket from its own holdings.

The offering, at the mid-point of its price range, would raise gross proceeds of 132 million euros, assuming all shares on offer are sold and the over-allotment option is fully taken up. That's more than the 120 million euros Westwing originally said it hoped to raise.

TIPPING POINT

Westwing estimates that the European market for homewares is worth 117 billion euros and is at a tipping point towards e-commerce, which has a share below 5 percent in the 11 continental European markets it operates in, compared to about 14 percent in Britain and the United States.

The company plans to use the IPO proceeds to invest in technology and marketing as well as to repay debt.

Munich-based Westwing offers online shoppers furniture and home accessories at deep discounts in daily flash sales, driving its loyal customers to check the site about 100 times a year.

That means that its marketing spending - at about 6 percent of sales in 2017 - is significantly below most e-commerce sites, the company estimates.

Last year, Westwing posted a loss before interest, tax, depreciation and amortisation (EBITDA) of 4.9 million euros on revenues of 266 million.

It moved into the black in the final quarter of 2017 and notched up sales of 120 million euros in the first half of this year with an adjusted EBITDA margin of 2 percent.

First trading of the shares is expected on Oct. 11, Westwing said.

In addition to Rocket, investors in Westwing include Investment AB Kinnevik, Access Industries, Summit Partners, Tengelmann Ventures, Fidelity Worldwide Investment and Odey.

$1 = 0.8551 euros Reporting by Douglas Busvine Editing by Maria Sheahan and Adrian Croft

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