Trainline on track to raise £75m in stock market float

Rail app business Trainline has confirmed plans to raise £75 million in capital to fund its expansion plans when it floats on the London Stock Exchange next month.

The firm, owned by US private equity giant KKR, confirmed its initial public offering (IPO) on the stock market in a move it said is “expected” to take place in June.

The IPO will see the firm float 25% of its total shares.

Trainline plans to use the funds to support its growth plans to increase its public profile and brand awareness.

The funding will also go towards “providing a base for long-term shareholders” and a liquidity opportunity for them as well.

The IPO is expected to be one of the largest in the UK this year, with reports last week that the company is eyeing a £1.5 billion valuation.

KKR purchased Trainline in 2015 for £500 million from fellow private equity firm Exponent.

The transport-booking company reported revenue of £210 million, and net ticket sales rose 19% to £3.2 billion, in the last full year.

Last year it also reported a £10.5 million operating profit following three successive years of losses.

Trainline employs more than 600 people across its offices in London, Paris and Edinburgh.

It has plenty of opportunity for growth in a fragmented and complex industry where only 39% of rail bookings were online in the five biggest European markets last year, it said.

JPMorgan and Morgan Stanley were hired by the company to lead the share sale.