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Pepco's Warsaw Listing Values Poundland Owner at €5bn

Published on May 14 2021 9:59 AM in Retail tagged: Poundland / Dealz / IPO / Pepco Group / Warsaw Listing

Pepco's Warsaw Listing Values Poundland Owner at €5bn

South African conglomerate Steinhoff said on Friday it had set the price of shares in discount retailer Pepco at 40 zlotys (€8.8) in its Warsaw listing, giving the company a market capitalisation of 23 billion zlotys (€5 billion).

Pepco, which owns the Poundland chain in the United Kingdom as well as the PEPCO and Dealz brands in Europe, trades from more than 3,200 stores across 16 countries and is led by CEO Andy Bond, a former boss of British supermarket group Asda.

The pricing is towards the lower end of the 38 zloty to 46 zloty per share indicative price range.

Steinhoff sold 102.3 million existing shares in Pepco, generating gross proceeds of 4.1 billion zlotys (900 million euros).

There is an over-allotment option of a maximum of 12 million shares.

Shareholding

The IPO reduces Steinhoff's shareholding in Pepco to 78.9%, assuming full exercise of the over-allotment option.

Pepco shares are expected to start trading on the Warsaw Stock Exchange on 26 May.

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Since 2019, Steinhoff and its creditors have been evaluating a range of strategic options for Pepco Group, including a potential public listing, private equity sale or trade sale.

The discount retailer reported a 31% drop in full-year core earnings, as coronavirus-related store closures impacted its performance.

Last month, Pepco Group announced plans open its first PEPCO branded store in Spain and 10 more by September. Its entry into Spain follows a successful opening in Italy where it has traded five stores since September 2020.

News by Reuters, edited by ESM. For more Retail stories, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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