Poundland and Pets at Home have both decided to take advantage of what they view as a favourable trading environment to list their shares publicly. We have seen an increase in the number of companies looking to list in this way, with the much-publicised Royal Mail float of last year, and then the recent offering of online appliance-retailer AO.com.
Poundland has looked to benefit from ongoing austerity in the UK. With the squeeze on consumers’ pockets, as wage rises fail to keep pace with inflation, its value offering has made it an attractive shopping destination. Meanwhile, Pets at Home has done well out of the traditional British love for pets, and its IPO is interesting in that many of the staff will benefit from a windfall of shares.
As with the Royal Mail, IG has offered a ‘grey market’ on these listings, allowing clients the chance to trade on the expected valuation. And, as we saw with Royal Mail, clients broadly expect the first day of full trading (on 17 March, after the shares have been conditionally trading since 12 March) to see a strong rise in the share price.
Poundland expected a valuation of £750 million, but our clients have now pushed this to over £1 billion. In the case of Pets at Home, the £1.3 billion estimate has been moved higher by sustained buying, to over £1.6 billion.
Our IPO markets can be found on the platform, under the ‘IPO’ heading on the list of markets.