Permira, Apax-backed New Look confirms £1.7bn IPO

Deborah Sterescu
02 February 2010

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Permira- and Apax-backed fashion retailer New Look has confirmed plans to float on the London Stock Exchange this morning, in a deal that values the business at £1.7bn.

The company has said that the £650m it plans to raise from the primary offering would be used to pay down its debt. After the IPO completes, New Look will have net debt of around £450m or less 2x EBITDA.

The business has said that a "limited secondary sell-down" by existing shareholders is a possibility, but according to sources close to the deal, this is unlikely, as there is not enough market capacity in the current economic climate. New Look's private equity owners will also likely be locked down for a period of at least 12 months.

Since New Look was taken private in 2004, Apax and Permira have invested more than £450m into the business.

The company recorded a turnover of £1.3bn last year with EBITDA of £218m. It has more than 1,000 stores, 601 of which are in the UK.

The IPO is expected to complete in mid-March. Credit Suisse, Deutsche Bank and JP Morgan Cazenove are acting as joint sponsors and bookrunners for the offer.