An online electrical retailer has raised £30 million through a listing on the AIM stock exchange.

The IPO values Leicester-based TV and white goods specialist Marks Electrical at £115 million.

Some £25 million is expected to go to the seller, while £2.6 will go into supporting the Leicester-based company’s growth, including investment in its delivery fleet and buildings.

Marks is also launching an incentive plan offering eligible staff up to £3,000 each.

In a statement the business said: “The placing attracted strong support from high quality institutional investors and was over-subscribed.

“Based on the placing price, the market capitalisation of the company when it starts trading on AIM on Friday (5 November) will be £115 million.”

Founder and chief executive Mark Smithson said: "We have been thrilled with the strong support we have received from institutional investors during the IPO and are delighted to welcome them as shareholders.

“I am also very pleased that our hardworking staff also now have shares in our company, recognising their significant contribution to making the business what it is today.

“Becoming a publicly listed company marks the start of an exciting new chapter for Marks Electrical as we push on with our growth plans and I look forward to growing the business alongside the rest of the team in the years to come.”

The business was set up by Mr Smithson in 1987, when he started buying and selling second-hand cookers out of his dad’s garage in Leicester.

He turned it into one of the UK’s first online electrical suppliers in 2005 and today employs 145 people.

In the year to Match 31, it had sales of £56 million, up 78 per cent on the previous year, helped by more people shopping online during the pandemic.

Its share of the £5.3 billion domestic appliances market has grown from 0.76 per cent to 1.22 per cent in the past year.

Today it sells around 3,000 products on its markselectrical.co.uk site including cookers, fridges, washing machines, dryers, dishwashers and TVs – all sourced from UK distributors.

Pre-tax profits for the year were £7.1 million, up from £790,000 a year earlier.

Market reports had previously suggested the business might be valued at between £135 million and £175 million.