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Pets at Home and Poundland set IPO prices
by James Phillipps on Mar 12, 2014 at 10:18
Pets at Home and Poundland have today set the price at which they will float on to the stock exchange.
Pets at Home’s shares will float at 245p, valuing the company at £1.2 billion, in the middle of its initial price range.
Poundland has set the price of its shares at 300p, towards the top end of its touted price range, valuing the company at £750 million. The flotation will raise £375 million and see private equity firm Warburg Pincus reduce its stake in the firm to 30%.
The initial public offering (IPO) market has been buoyant this year, particularly in retail. Bolton-based online appliance retailer AO.com, which last month floated at 285p, saw its share price surge by 33% to £378p on its first day of trading. This pushed the value of the company up to £1.2 billion.
More big deals are in the pipeline with House of Fraser and B&M also expected to come to market this year.
Pets at Home chief executive officer Nick Wood said: 'Today's announcement marks an important moment for all of us at Pets at Home. We are delighted that our initial public offering has been so well received by colleagues, institutions and retail investors alike, who have recognised that this is a unique and differentiated business with multiple opportunities for future growth.
'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.'
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