An online ethical fashion retailer has joined AIM primarily to fund its projected growth and create an own-label collection. Adili raised £1.5 million after it placed more than 8.5 million ordinary shares at 17.5p each.

An online ethical fashion retailer has joined AIM primarily to fund its projected growth and create an own-label collection. Adili raised £1.5 million after it placed more than 8.5 million ordinary shares at 17.5p each.

The placing has valued the business, which sells clothes and accessories from a range of ethical brands, at some £4.4 million.

The IPO’s nominated adviser and broker was John East & Partners, while Andrew Edmonds of Smith & Williamson was the reporting accountant.

Edmonds said: “Adili joined AIM successfully despite tough market conditions. Ethical fashion in the past was regarded as frumpy, but Adili has transformed that outdated view and is well placed to tap into the £42 billion predicted by the e-tailing industry body, IMRG, to be the amount spent online by UK shoppers in 2007.”