Upcoming IPO to value Warburg-backed Poundland at £750m

Alice Murray
19 February 2014

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UK discount retailer Poundland, backed by Warburg Pincus, has announced its intention to list on the London Stock Exchange.

The offer will include a partial sale of Warburg's stake as well as interests held by senior management. The listing is expected to value the company at £750m.

The plans come as a surprisingly high number of private equity-backed retail companies are considering flotations, including KKR-backed Pets at Home, Bridgepoint-owned Fat Face and OpCapita-backed Game Group.

In connection with the IPO, the company has also appointed Darren Shapland, Trevor Bond, Tea Colaianni and Grant Hearn as independent non-executive directors.

The listing comes after the company reported a 15.6% underlying earning boost in October last year.

Revenues stood at £880.5m for the 2013 financial year, up from the £641.5m reported in 2011. Underlying EBITDA rose to £45.5m from £31.1m in 2011.

Warburg Pincus acquired a majority stake in the company in April 2010 from Advent International in a deal believed to be worth £200m.

Founded in 1990, Pounland sells a wide range of products including gardening tools, confectionary and home cleaning products, all for a nominal value of £1. The company operates 498 stores in the UK and 31 in Ireland under the Dealz brand.