Poundland confirms IPO share price, valuing the business at £750m
INVESTORS looking to buy a stake in Black Country discount retailer Poundland Group will have pay 300p a share it was confirmed today – as reported by TheBusinessDesk.com on Monday.
The group’s initial public offering will be of 125,000,000 shares at 300p each, giving the group a market capitalisation of £750m.
The offer is expected to raise gross proceeds of £375m – assuming there is no exercise of the over-allotment option. If the latter should apply then this could rise to £431m.
Selling shareholders comprise funds advised by Warburg Pincus together with certain directors, members of senior management, the ESOP trustee and other individuals. The company will not receive any proceeds from the offer.
At admission, Poundland will have 250,000,000 shares in issue with a free float of 50% – assuming there is no exercise of the over-allotment option.
Following the offer, the Warburg Pincus Funds will own 37.9% of the company, with Poundland directors and members of senior management taking a 10.2% stake.
Conditional dealings in the shares began trading on the London Stock Exchange at 8am today. Admission to the premium listing segment of the Official List and to trading on the main market is expected on March 17.
Jim McCarthy, Poundland CEO, said: “I’m very pleased to welcome our new shareholders to Poundland. The combination of a track record of delivering strong, profitable growth underpinned by a well-invested infrastructure and a compelling growth story has attracted overwhelming support for Poundland’s IPO.
“We look forward to continuing to deliver, as a listed company, Poundland’s mission to provide our customers with amazing value every day.”
Poundland is the largest single price value general merchandise retailer in Europe by both sales and number of stores. The Willenhall-based group opened its first store in 1990 and has grown to operate a network of over 500 across the UK and Ireland.
