Trainline IPO

Trainline is expected to list in June 2019, with the company targeting a valuation of around £1.5 billion. If it succeeds, it will be one of the UK’s largest initial public offerings (IPOs) of 2019. Read on to learn about Trainline’s business model, outlook and performance, as well as how you can trade its shares.

Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening a trading account. We’re here 24 hours a day, from 8am Saturday to 10pm Friday.

Contact us: 0800 195 3100

Trainline IPO

Trainline is expected to list in June 2019, with the company targeting a valuation of around £1.5 billion. If it succeeds, it will be one of the UK’s largest initial public offerings (IPOs) of 2019. Read on to learn about Trainline’s business model, outlook and performance, as well as how you can trade its shares.

Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening a trading account. We’re here 24 hours a day, from 8am Saturday to 10pm Friday.

Contact us: 0800 195 3100


Why trade Trainline's IPO with IG?

Speculate on Trainline

Trade on leverage with CFDs or spread bets

Go long or short

Buy or sell based on your expectations for Trainline’s share price

Invest in Trainline stock

Buy Trainline shares with a share dealing account


How to trade the Trainline IPO

After the IPO, you can trade Trainline shares in two ways with IG:

Spread betting and CFDs

With spread betting and CFDs, you can speculate on Trainline’s share price movements without having to own the underlying asset. You can go long or short, which means you can speculate on rising as well as falling prices. If you expect Trainline shares to go up, you go long and if you expect them to fall, you go short.

Share dealing

You can buy Trainline shares via our share dealing service. If you invest in Trainline stock, you own the physical shares, and you can only profit if the stock price goes up. The benefits of buying Trainline shares include possible dividend payments.


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When is Trainline’s IPO?

Trainline’s IPO is expected in June 2019, but chief financial officer Shaun McCabe confirmed that the exact date is still under discussion. Trainline is seeking a premium listing on the London Stock Exchange (LSE) and plans to raise £75 million through the IPO. The company wants to use these funds to expand the business.

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What is Trainline likely to be valued at when it lists?

Trainline is likely to be valued at close to £1.5 billion when it lists, but this figure has not been confirmed. If it were to list at that amount, the valuation would be almost three times the £500 million it was valued at in 2015 when the business was acquired by Kohlberg Kravis Roberts (KKR). Further, a £1.5 billion valuation would mean it is one of the biggest IPOs in the UK this year. The closest to it is financial services firm Finablr, which launched an IPO in May 2019 at £1.2 billion.


What could the Trainline share price be when it floats?

It has been confirmed that Trainline will float a quarter of its shares, but at an as-yet undisclosed price. When Trainline decides to go ahead with its public offering, an investment bank will do the final valuation to determine exactly how many shares will be offered, and at what price.


Trainline’s key personnel: who manages the company?

There are ten members on Trainline’s management team and seven members on the board.

Trainline management team

Clare Gilmartin Chief executive officer
Daniel Beutler President, Trainline International
Shaun McCabe Chief finance officer
Mark Holt Chief technology officer
Jonathan Moore Chief product officer
Victoria Biggs VP brand and communications
Bill Hopkins Executive director operations
Neil Murrin General counsel and director
Robin Hancock Chief people officer
Pete Wade VP growth

Trainline board of directors

Douglas McCallum Chair
Clare Gilmartin Chief executive officer
Shaun McCabe Chief finance officer
Philipp Freise Non-executive director
Franziska Kayser Non-executive director
Andy Phillipps Non-executive director
Lucian Schönefelder Non-executive director

It has been reported that Brian McBride could be appointed to the Trainline board as deputy chairman ahead of the IPO.


Why is Trainline listing?

Trainline’s chief executive officer Clare Gilmartin said that Trainline is listing because it is the natural next step for the business. The company also wants to reduce debts, attract and retain talent, and improve its public profile. As well, the IPO will give existing shareholders the opportunity to collect their dues, if they wish to cash out.


Who are Trainline’s current investors?

Trainline currently has six investors – the most recent additions are Pierre Bonelli and Alven Capital. Other investors are Index Ventures, CM-CIC Capital Prive, Xavier Niel and LocalGlobe. Trainline has received £8.48 million in funding from its investors to date.


What is the outlook for Trainline?

The outlook for Trainline could be positive, though its future success will depend on how well it can execute plans for expansion within a competitive market. According to its CEO, these plans include expansion of its model across Europe in the near future – to increase the number of rail carriers that it services.

Other industry verticals such as travel packages and holidays could also be on the cards, but only if these pillars can strengthen the rail and coach business.


What is Trainline’s business model?

Trainline’s business model is based on a two-sided network – supporting rail, coach and travel companies, while providing a one-stop ticket shop for travellers and businesses.

Trainline helps individuals to buy tickets at the best price and gives them personalised travel information via its app. Travellers can access 220 carriers through the Trainline website or app, pay using one of nine currencies, and transact in 11 languages. The company also offers booking solutions for businesses, including agent tools and season tickets.

Trainline makes money from commissions, paid by the carriers who list their services, and also by charging customers a small booking fee.


How has Trainline been performing?

Trainline’s revenue and gross profit has seen a steady increase since 2015. The revenue stream is made up of commissions charged through ticket sales, money made from providing rail tickets to global travel brands, as well as online retailing for train companies. What’s more, ticket sales jumped from £2.4 billion in 2018 to £3.2 billion in 2019.1

2015 2016 2017 2018
Revenue2 £117.6 million £134.6 million £146.7 million £166.8 million
Gross profit2 £80.8 million £88.7 million £93.1 million £101.7 million

Trainline’s website and app receive more than 50 million collective visits a month and sell around 150 tickets every minute. Mobile app usage has increased significantly, with more than 17 million users and a year-on-year growth of 120%.Trainline’s website and app receive more than 50 million collective visits a month and sell around 150 tickets every minute. Mobile app usage has increased significantly, with more than 17 million users and a year-on-year growth of 120%.


Who are Trainline’s main competitors?

Trainline’s main competitors are National Rail Enquiries, RailEasy and mytrainticket.co.uk. While there are many travel websites, offering hotel bookings, holiday packages and airline travel reservations, the market for online rail and coach bookings is arguably not quite as saturated. However, a major challenge for Trainline is to convert people to buy their tickets online, as 70% of travellers are still buying their tickets at stations.


How do IPOs work?

IPOs are initial public offerings – meaning it’s the first time that a company decides to sell its shares to the public. The company decides how many of its shares it wants to sell and then the investment bank does the valuation of the business. Once that is done, an initial share price is released, and the public can start buying and trading shares.

Trade Trainline’s IPO today

Open your IG account today to start trading and buying Trainline shares as soon as the Trainline IPO is complete. If you’re not ready to start straight away, you can practise on a demo account.

FAQs

Who owns Trainline?

Trainline is owned by Kohlberg Kravis Roberts (KKR), who acquired the business in 2015. It does have private investors, but most of the Trainline stock belongs to KKR. Seven months after the acquisition, the business was renamed from thetrainline.com to Trainline.

How does Trainline make money?

Trainline makes money by charging a commission to book rail and coach tickets through its website and app. It works on a tiered fee system – where the booking method, transaction value and payment method all affect the fee paid. By using Trainline app instead of the website, users can avoid certain fees, which generally range from £0.25 to £1.50.

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1 LSE, 2019
2 Craft, 2018

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.