Trainline on track to float

TRAINLINE.COM kicked off the first Initial Public Offering of the year with plans to raise £75m in a listing on the London Stock Exchange, to fund expansion across Europe, writes Etain Lavelle.

The company, which has a 38pc share of the online rail booking market in the UK, is likely to be valued at around £500m, according to sector experts.

‘Our aim is to be the travel companion in everyone’s pocket,’ chief executive Clare Gilmartin, pictured, told The Mail.

‘The proceeds (of the IPO) will be used to further our growth strategy, which is essentially mobile,’ she said.

Rail traffic has grown as more people ditch overcrowded roads for trains, where they can enjoy wi-fi and direct inter-city travel. The Department of Transport says rail travel was the fastest growing mode of transport in the UK in the decade starting 2002, as measured by passenger kilometres. Trainline.com offers all fares and types from 22 rail companies in the UK - online or by phone - selling a ticket every 2.5 seconds.

‘I am very bullish on the outlook for online rail – in some European markets, that growth is 40pc,’ said Gilmartin, who is a former ebay executive. The company has already entered into deals in Germany and in Italy and is in further discussions with rail companies in other European countries, she said. Private equity groups Exponent, HarbourVest partners and Northwestern Mutual Life Assurance Company will sell down part of their stakes in Trainline.com. Following its listing, the online group intends to declare a dividend of 25pc of annual profits after tax.