CD&R’s B&M raises £1bn in IPO

The offer is expected to raise a total of £1.08bn, though this may increase to around £1.19bn should the overallotment option – which comprises up to 40 million additional shares – be exercised in full.

Slightly more than £1bn of the IPO's proceeds will be reaped by selling shareholders, with only £75m being taken home by B&M. Alongside CD&R's VIII fund, the Arora family are selling shares in the offering.

Prior to any exercise of the overallotment option, the company will have a free float of 40% on admission, which is expected to take place on 17 June under the ticker "BME". Condition dealings commenced this morning (12 June).

Bank of America Merrill Lynch and Goldman Sachs have been appointed joint sponsors and global coordinators for the flotation, as well as joint bookrunners alongside Credit Suisse Securities and Deutsche Bank. Numis Securities and Jefferies International are acting as co-lead managers.

CD&R acquired B&M at the end of 2012 in a deal rumoured to sit around the £950m mark. The firm bought its stake from the Arora family though a Rothschild-run auction process.

Company
Founded in 1976 and headquartered in Liverpool, B&M operates a range of discount stores in the north of England, Scotland, Northern Ireland and Wales.

The Arora family acquired the company in 2005. Since the acquisition, the chain has grown to 300 stores with a headcount exceeding 13,000 people. The company generated turnover of £935m in 2012.

People
Simon Arora is the CEO of B&M.

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