LONDON Feb 28 British discount retailer
Poundland has set its share offer price range at 250-300 pence,
giving an implied market value of 625-750 million pounds
($1.04-$1.25 billion) when its lists on the London Stock
Exchange, according to an industry source.
The book build amongst institutional investors for
Poundland's share offer was currently underway, the source said
The chain of over 500 stores, which sells items for 1 pound,
said last month its share offer would comprise a partial sale to
institutional investors of the holdings of majority owner
Warburg Pincus, the U.S. private equity firm, and senior
Poundland, the first British discount retailer to seek a
public listing, will not be issuing any new shares to investors
in the offer.
Warburg Pincus owns 76 percent 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.
Separately on Friday Britain's biggest pet shop group Pets
at Home set its share offer price at 210-260 pence,
giving an implied market value of 1.05-1.30 billion pounds
The firm, mainly owned by U.S. private equity group KKR
, is looking to raise about 280 million pounds from the
sale of new shares, while KKR and management are also expected
to divest partial holdings.
Poundland and Pets at Home's flotations are two of many
expected in Britain's retail sector in 2014 on the back of the
country's gradually improving economy and consumer outlook.
Convenience store McColl's and online domestic appliances
firm AO World have already listed, while Fat Face, B&M
and House of Fraser are amongst other store groups expected to
come to market.