DFS in line for £100m windfall from IPO
FURNITURE manufacturer and retailer DFS expects to raise £98m when it floats on the London Stock Exchange, which would value the company at around £585m.
Stock in the Doncaster-headquartered company, which says it has a 25.7% share of the £3bn UK upholstered furniture market, will be set at 245 pence to 310 pence per share.
At the mid-point of the price range, DFS’s market capitalisation would be around £585m, but could be as high as £650m.
The company plans to raise £98m through the IPO, which will be used to reduce its financial borrowings and provide access to a lower cost of financing.
Final pricing is expected to be announced on or around March 6, with conditional dealings in the shares beginning on the London Stock Exchange on the same day.
Ian Filby, chief executive of DFS, said: “Our vision is to take DFS from being a great British business to a world class business.
“We have a clear strategy to further broaden our appeal, enhance our service and ensure our products are easily accessible to customers through our UK and international store expansion programme, continued development of our multichannel proposition and constant enhancement of our product range.
“We have a proven business model and an excellent track record of delivering long term sales and market share growth, as well as strong cash generation and shareholder returns. We are excited about our future as a listed business and we are delighted to offer institutional and retail investors the opportunity to become shareholders of DFS.”
