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Dealz owners to float on the London Stock Exchange

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Model Aoife Cogan opening Dealz Talbot Street

Model Aoife Cogan opening Dealz Talbot Street

Model Aoife Cogan opening Dealz Talbot Street

British discount retailer Poundland, which owns the Dealz chain here, plans to list its shares on the London Stock Exchange in March, joining a surge of store groups seeking flotations as the outlook for consumer spending improves.

The over 500 store Poundland, which sells items for one pound or €1.50 here, said the offer will comprise a partial sale to institutional investors of the holdings of majority owner Warburg Pincus and senior management.

Poundland will not be issuing any new shares to investors in the offer.

Reports said in November Poundland would seek a valuation of 700-800 million pounds ($1.2-$1.3 billion).

Investment house Warburg Pincus owns 76pc of Poundland, with the balance owned by the retailer's management, led by Chief Executive Jim McCarthy, a 30-year veteran of the retail sector.

The listing of Poundland is one of many expected in Britain's retail sector in 2014. Russian hypermarket chain Lenta, newsagent and convenience store McColl's and online domestic appliances retailer AO, have all announced intentions to float in recent weeks.

Pets at Home, Fat Face, House of Fraser and Boohoo.com are also expected to come to market later this year, seeking to capitalise from the UK's gradually improving economy.

Discount retailers outperformed the market in the economic downturn as cons

Online Editors