Sunny

Sunny

max temp: 23°C

min temp: 17°C

Search

The pigs have arrived. See the latest

Pigs Gone Wild

news here.

Retail: Contrasting fortunes as Poundland and Pets at Home join London stock market

09:25 12 March 2014

Poundland is among the latest retailers to join the London stock market.

Poundland is among the latest retailers to join the London stock market.

Retail chains Pets at Home and Poundland joined the London stock market today in flotations valuing the pair at a combined £2billion.

The start of conditional dealings saw contrasting fortunes for the pair, with Pets at Home slipping back from its opening price of 245p but Poundland surging by 18% to increase it market value to nearly £900million at one stage.

A bout of flotation fever on financial markets has also seen convenience store McColl’s and domestic appliances group AO join the market in recent days.

Pets at Home, which was valued at £1.2bn in the initial public offering, is raising £280m towards paying down debt. Majority owner KKR and other shareholders, including about 500 members of staff who owned 10% of the business, will receive £210 million by reducing their stakes.

Ordinary investors who applied for the minimum of £1,000 of shares will get the full amount but those wanting more than £1,000 have been limited to 420 each, worth £1,029. Staff will also receive shares worth a total of £1.7m.

Poundland’s flotation reduces the stake of private equity firm Warburg Pincus, which bought the group for £200m in 2010 and will pocket most of today’s proceeds of £375m. The retail chain will not realise any new funds.

Warburg Pincus is expected to retain a stake of more than 30%, while directors and senior staff will have 10.2% of the company.

Since opening its first store in Burton-on-Trent in 1990, Poundland has grown to nearly 500 outlets in the UK and plans to double that number. It also operates more than 30 stores under the Dealz brand in Ireland.

Founder Steve Smith netted £50m from selling his stake in the business more than a decade ago.

Chief executive Jim McCarthy said: “We look forward to continuing to deliver, as a listed company, Poundland’s mission to provide our customers with amazing value every day.”

Pets at Home claims to have a 12% share of the market and more stores than its five biggest rivals combined. But it is keen to expand further, boosting its number of stores from 369 to more than 500, while it wants to almost treble the small animal veterinary surgeries it operates to over 700.

The retailer’s listing comes 23 years after founder Anthony Preston opened the first Pets at Home store in Chester. Mr Preston retains a small stake in the group.

The business was then developed by private equity firms after its acquisition by Bridgepoint for £230 million in 2004 and then KKR, which acquired Pets at Home in a £955m deal in 2010.

Chief executive Nick Wood said: “Pets at Home has enjoyed strong growth for over a decade and we are now ready to move on to the next stage of our development as a listed business.”

Unconditional share dealings in the two companies will commence on Monday.

0 comments

Woman repays £7,600 in overpayment claim

A Kesgrave woman has been fined after making a false statement to obtain £7,600 worth of benefits which she was not entitled to.

A motorist involved in a crash on the A14 in which a teenager died will live with the “huge remorse” for the rest of his life, a court has heard.

A police officer stands outside the Olympia mall in Munich, southern Germany, Friday, July 22, 2016 after shots were fired. (AP Photo/Sebastian Widmann)

The gunman who shot dead nine people and injured 16 others at a Munich shopping centre was an 18-year-old German-Iranian man, police believe.

Network Rail is replacing overhead line equipment between Shenfield and Liverpool Street.

Delays caused by extreme heat like those that affected rail services in the region could be less common in future according to Network Rail.

St Helena Hospice assistant nurse Emma Young reduced staff and patients to tears in Colchester after performing Adele's Make You Feel My Love. Pic: St Helena Hospice.

A video of an assistant nurse performing an Adele song at a Colchester hospice has gone viral.

An aerial shot of Bramford.

More than 250 homes lost power this evening due to emergency repair work by UK Power Networks.

Hugh O'Neill, headteacher of St Benedict's School, Bury St Edmunds.

Turbulent times are ahead for Bury St Edmunds schools with “chaos” predicted as the two and three-tier systems compete against each other.

Andy Beckwith

An emotional appeal has been made to find a former Essex man who has gone missing in Gibraltar.

The village sign in Great Wratting.

Firefighters freed a trapped motorist from his vehicle following a collision in a Suffolk village.

A motorcycle has crashed in Hintlesham.

A motorcyclist and a pillion passenger were taken to hospital after crashing in Hintlesham.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Newsletter Sign Up

Great British Life

Great British Life
MyDate24 MyPhotos24