UK - Debenhams lined up for £3bn IPO

This is the third time the 193-year-old company will float its shares - it made its debut back in 1928 but was bought by Burton Group (now Philip Green's Arcadia) in the mid-1980s. It was spun off by Arcadia in 1998. Debenhams was last taken private in a £1.9bn 2003 deal. The private equity syndicate put £600m into the deal and have already more than doubled their money by taking £1.3bn out of the business in dividend payments. Debenhams has performed well under private ownership, pushing sales ahead by 15% to above £2bn and its profits by more than 50% to £330m.

In what will be one of the biggest floats this year, shares in Britain's second-largest department store group will be priced at 195p-250p, giving it a market capitalisation of between £1.675bn and £1.95bn. It will also carry debt of £1.2bn, giving it an enterprise value of £2.88bn to £3.15bn.

The £700m proceeds from the flotation will be used to repay debt. About 55% of Debenhams' enlarged share capital is being sold and the final price will be set on May 4.

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