Ocado confirms stock market flotation

Ocado delivers Waitrose-branded products as well as other brands

Ocado, the online service that delivers Waitrose groceries, has confirmed that it will float on the London Stock Exchange with the aim of raising £200m.

The shares will be offered to institutional investors, employees and customers who have spent £300 or more so far this year.

The loss-making company also announced a 30% rise in sales in the 24 weeks to 16 May, compared with a year earlier.

Earlier this month, Ocado said it was considering a flotation.

"The team at Ocado has achieved an extraordinary feat in building a business from scratch to be one of the most recognised retail brands in the UK," said chairman Michael Grade.

Ocado, which was set up in 2002, has never made a profit.

It was formed by three ex-Goldman Sachs bankers along with the department chain John Lewis, a sister business of Waitrose.