Poundland sets IPO price, valuing firm at £750m
Poundland, which trades as Dealz here, set the price for its initial public offerings yesterday, the latest British retailer to capitalise on London's buoyant market conditions.
Another retailer, Pets at Home, also set a price yesterday, saying it will float shares at 245 pence (€2.93) apiece, in the middle of its initial price range, and giving the company a market capitalisation of £1.2bn (€1.44bn).
The company is mainly owned by US private equity group KKR and run by chief executive Nick Wood, a former head 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 (€3.59) a share, the top of its initial price range, and valuing the company at £750m.
A source familiar with the matter said that demand had been high, with the books covered over 15 times.
Poundland's flotation would raise £375m and see private equity firm Warburg Pincus reduce its stake in company to 37.9pc, or 30pc if an over-allotment is exercised.
JP Morgan and Credit Suisse are bookrunners on the Poundland listing. Bank of America Merrill Lynch, Goldman Sachs and KKR Capital Markets are leading the Pets at Home listing. (Reuters)