Reuters – Poundland and Pets at Home set the prices for their initial public offerings (IPOs) on Wednesday, the latest British retailers to capitalise on London’s buoyant market conditions.
Pets at Home will float shares at 245 pence apiece, in the middle of its initial price range, and giving the company a market capitalisation of 1.2 billion pounds ($2 billion).
The company is mainly owned by U.S. private equity group KKR and run by Chief Executive Nick Wood, a former CEO of American Golf and himself the owner of two dogs and Snuggles the hamster.
Europe’s biggest single-price retailer Poundland, which sells everything from Cadbury’s chocolates to Coca-Cola soft drinks for just a pound, set the price of its IPO at 300 pence a share, the top of its initial price range, and valuing the company at 750 million pounds.
A source familiar with the matter said that demand had been high, with the books covered over fifteen times.
Poundland’s flotation would raise 375 million pounds and see private equity firm Warburg Pincus reduce its stake in company to 37.9 percent, or 30 percent if an over-allotment is exercised.
Britain’s retail industry is set for a flurry of offerings this year. AO World floated in February, while Boohoo.com, B&M and House of Fraser are also expected to come to market.
JP Morgan and Credit Suisse are bookrunners on the Poundland listing, while Bank of America Merrill Lynch, Goldman Sachs and KKR Capital Markets are leading the Pets at Home listing.
Take your pick!
- Buyouts delivers exclusive news and analysis about private equity deals, fundraising, top-quartile managers and more. Get your FREE trial or subscribe now.
- VC Journal provides exclusive news and analysis about venture capital deals, fundraising, top-quartile investors and more. Get your FREE trial or subscribe now.