Pets at Home IPO: Retailer sets offer price, valuing company at up to £1.3bn

Written by: Jane Tindall
April 9, 2020, Friday, February 28: Britain’s largest pet goods retailer, Pets at Home, has revealed details of its plans to float on the London Stock Exchange (LSE).

The company, which announced its initial public offering (IPO) intentions earlier this month (Pets at Home IPO plans unveiled), said in a statement today that it would set the expected price range for the offer at 210p to 260p per share, giving it an implied market capitalisation of between £1.05 billion and £1.3 billion.

Pets at Home, which is mainly owned by US private equity group KKR, further revealed that between 25 percent and 40 percent of its issued share capital would be freely tradable post flotation. About 85 percent of the offer will be allocated to institutional investors with the remaining 15 percent to retail investors and company employees.
The retailer is raising around £280 million to allow it to pay down a chunk of debt accrued when KKR acquired the business for £955 million in 2010. After the fundraising and with the proceeds of £325 million from a new senior facilities agreement, Pets at Home will have net debts at admission of around £275 million.

CEO Nick Wood said in the company’s statement today: “We believe the listing will provide us with the right platform for the next stage of the group’s growth and development.”
Pets at Home’s conditional dealings on the LSE are to begin on March 13, with unconditional trading from March 18.
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Pets at Home’s IPO is one of many expected in Britain’s retail sector this year on the back of the country’s gradually improving economy.
On Tuesday, McColl’s (LON:MCLS) listed on the LSE, but the stock market gave a muted reception to the convenience stores and newsagents operator. AO World (LON:AO) also made its London debut this week. Shares in the online domestic appliances firm soared on Wednesday, the group’s first day of trading.

Among other retailers that may make a stock market debut this year, discount retailer Poundland has already announced its intention to float (House of Fraser IPO: Retailer to push for float as sale talks end) are yet to confirm their plans for going public.