IPO — Trustpilot Raises $655 Million, Shares Soar in London Debut

By Adriaan Brits Tuesday, March 23, 2021

Trustpilot, a Denmark-based consumer review business, has recorded a success in its London IPO (initial public offering). Shares of Trustpilot soared over 15% today in the company’s first trading day.

A person giving a five-star rating from their smartphone.

Another Successful London IPO

The tech company, founded in 2007, raised £473 million ($655 million) after pricing its shares at £2.65 ($3.65) each, which is a price at the top end of the indicative range. The tech business reportedly attracted strong interest from new investors as its IPO order book was closed after one and a half hours after it was opened.

About 10% of the raised funds will go to the business itself, while the remaining 90% is sold by the company’s backers, who sold 161 million existing shares for £427 million ($588 million). Based on these figures, Trustpilot has a business valuation of £1.08 billion ($1.49 billion).

Today’s IPO also marks another win for the UK after it left the European Union. Companies have now raised as much as £5.2 billion ($7.15 billion) through the IPO model this year. London investors will now shift their focus toward the much-anticipated Deliveroo IPO, scheduled for March 31.

“We examined a number of locations, and on balance London was the natural choice for us for a couple of reasons. The UK is one of our most important markets, and I think London is a growing tech scene. In the future I expect a lot of the significant tech IPOs will happen in London,” Peter Holten Mühlmann, CEO of the company, said in an interview.

“The London stock market has a lot of liquidity, and they are exhibiting the right long term mindset on how they are looking at operating the listing rules.”

Existing investors, including BlackRock, FIL Investments International, Caledonia Investments, Capital Research Global Investors, Adelphi Capital, and Janus Henderson Group, can increase the raised amount to £544 million ($748.3 million) if they take an option to sell an additional amount of shares.

The tech business hosted about 120 million reviews by the end of the last year. The company saw its revenue jump by 25% last year to $101.9 million, but it’s yet to become profitable. Last year, it recorded a loss of $12.2 million, but still much better than a loss of $22.7 million reported for 2019.

Similar to other tech-related businesses, the company saw its business thrive in the work-from-home era. The number of business clients surged to over half a million of web domains, with nearly 20,000 paying the company to manage reviews. Trustpilot adds over 12,000 new domains every month, according to chief executive and founder Peter Holten Müehlmann.

Trustipilot stock, which trades at the London Stock Exchange under the ticker “TRST,” opened at £3 ($4.12) a share, which is more than 13% higher compared to the IPO price of £2.65 ($3.65) per unit. In the meantime, shares soared to £3.08 ($4.24) a share, bringing the total gains to over 16%.


Consumer review company Trustpilot saw its shares soar in the London market debut after raising £473 million ($655 million) through its IPO.

About the Author

Headshot for author Adriaan Brits
As an analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in Advanced Analytics & Media.

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