Ocado Set For IPO, Waitrose Relationship To Be Critical Issue

It has been reported that UK online grocery retailer Ocado is close to appointing banks for an initial public offering (IPO) sometime in the first half of 2010. The IPO could value the firm at up to GBP1.2bn, which would put it among the FTSE 250 group of companies. Ocado has yet to generate any earnings and will clearly need to convince investors of the long-term profitability of its business model. However, perhaps an even greater concern for any investors will be the strength of its partnership with upmarket retailer Waitrose, with Ocado's business model to some extent reliant on

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