Asda IPO

American multinational Walmart has confirmed that its UK subsidiary group, Asda, is seeking an IPO by 2022. We explore Asda’s past performance and the outlook for the business, and delve into what’s known about its initial public offering.

Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening a trading account. We’re here 24 hours a day, from 8am Saturday to 10pm Friday.

Contact us: 0800 195 3100

Asda IPO

American multinational Walmart has confirmed that its UK subsidiary group, Asda, is seeking an IPO by 2022. We explore Asda’s past performance and the outlook for the business, and delve into what’s known about its initial public offering.

Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening a trading account. We’re here 24 hours a day, from 8am Saturday to 10pm Friday.

Contact us: 0800 195 3100

Why trade Asda's IPO with IG?

Speculate on Asda

Leverage your exposure with CFD trading or spread betting

Go long or short

Buy or sell based on your prediction of Asda’s market cap

Buy Asda stock

Invest in Asda with a share dealing account

When is the Asda IPO?

The Asda IPO is not likely to happen before 2022, but no exact date has been set. Head of Walmart’s international division, Judith McKenna, confirmed that the business is not rushing into anything and the listing will take a few years to happen. Asda is seeking to list on the London Stock Exchange (LSE).

How to trade or invest in the Asda IPO

If you want to trade or invest in the Asda IPO, you can choose to do so before or after the listing.

Before the IPO

IG could offer a ‘grey market’ before Asda’s IPO. If we do this, you can speculate on Asda’s share price before the listing happens. With our grey markets, you can:

  • Buy (go long) if you think the market cap will be above the predicted price at the end of the first trading day
  • Sell (go short) if you think the market cap will be below the predicted price at the end of the first trading day

More about our grey market

After the IPO

You can trade or invest in Asda shares after the IPO. You can either:


Open an account now

Fast execution on a huge range of markets

Enjoy flexible access to more than 16,000 global markets, with reliable execution

Deal seamlessly, wherever you are

Trade on the move with our natively designed, award-winning trading app

Feel secure with a trusted provider

With 45 years of experience, we’re proud to offer a truly market-leading service

What will Asda’s IPO value be?

Asda’s IPO value is still to be decided by an investment bank. This will happen when it files for the listing. However, it has been reported that Asda could be valued at between £7 billion and £8 billion. This figure is based on assumed annual earnings of £1.2 billion.

What could the Asda share price be when it floats?

Asda’s share price when it floats will depend on how many shares it will release and what the final IPO valuation is. The exact figure will only be released when the valuation has been decided by an investment bank. After the IPO, the share price will depend on supply and demand. It is not known how many shares Asda will release to the public.

Why is Asda going public?

Judith McKenna (Head of Walmart’s international division) said that Asda is seeking to go public to ‘strengthen the long-term success of the business’. As Walmart is an American corporation, she said that the focus of the listing would be to create a stronger local (UK) business. The IPO would give Asda the opportunity to pursue its own strategy while retaining access to Walmart’s buying power. The listing would also mean a big cash injection for Walmart.

In April 2019, the Competition and Markets Authority (CMA) shut down a merger between Asda and Sainsbury’s, stating that the agreement would result in higher prices and fewer product options for consumers. The IPO announcement was made after a proposed merger failed.

What is the outlook for Asda?

The outlook for Asda is mixed following the collapsed Sainsbury’s deal and given the upcoming challenges surrounding Brexit. Going forward, there will be a strong focus on its strategic priorities, particularly customer value and experience – the latter being a way for the firm to differentiate itself from other discount supermarkets such as Aldi and Lidl. The firm has plans to roll out ‘scan and go’ machines, expand its click-and-collect offering, and even to trial same-day deliveries to improve the customer experience.

How has Asda been performing?

Asda has reported impressive sales growth for eight consecutive quarters (as at September 2019). Its last financial year showed operating profit was up to £803.2 million and net cashflow was up to £1.29 billion.

These results came despite the macroeconomic uncertainty stemming from Brexit. However, CEO Roger Burnley stated that planning for the UK’s departure might prove more difficult than the expected March exit, as logistics networks will have an overflow of Christmas stock.

Asda was the first UK retailer to launch a ‘Black Friday’ sale in 2013, and its market share increased slightly from 2013 (17.1%) to 2014 (17.2%). This was until discount retailers Aldi and Lidl started gaining popularity – and the Asda market share started to dwindle (15.4% in 2019).

Who are Asda’s competitors?

Asda’s competitors include Tesco (market cap of £23 billion), Sainsbury (market cap of £4.7 billion), Morrison (market cap of £4.8 billion), Waitrose (not listed), Co-op (not listed) Lidl (not listed) and Aldi (not listed). Asda is the third largest of the four major UK retail chains in terms of market share.

Asda’s key personnel: who manages the company?

There are six key personnel members on Asda’s management team. Members of the executive board are:

Roger Burnley President and chief executive officer
Andy Murray Chief customer officer
Rob McWilliam Chief financial officer
Hayley Tatum Senior vice president: people
Anthony Hemmerdinger Senior vice president: operations
Derek Lawlor Senior vice president: commercial

What is Asda’s business model?

Asda’s business model is centred around the sale of food, apparel and general merchandise. It also provides both online shopping and delivery services. Asda manages:

  • Supercentres – the largest of its stores, offering an extended range of items, often supported by restaurants, banks, hairdressers and dry cleaners
  • Superstores – the most common format, offering a large range of items, often supported by a café, healthcare, and other non-food services
  • Supermarkets – the smallest of its stores, focusing on food and convenience
  • Asda Living – offering a range of home and fashion merchandise
  • Petrol filling stations – offering petrol services and a kiosk with food and travel items

Register your interest for IPO news


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

How do IPOs work?

IPOs – or initial public offerings – happen when a private company decides to go public. This means that they list on an exchange and start selling shares to the public. Once the company decides how many of its shares it wants to sell, an investment bank will do a valuation of the business to decide how much the shares are worth. This short video has more details on how IPOs work.

Choose the UK’s No.1 spread betting and CFD provider1

Why open a trading account with anyone but the best spread betting and CFD provider? With 45 years of experience, we're proud to offer a truly market-leading service.

FAQs

Could I profit from the Asda IPO?

Yes, you could profit from the Asda IPO. There are two ways to do this – by trading or investing. When trading via CFDs or spread bets, you can profit from upward or downward price movements. If we offer a grey market on Asda’s price, you’ll be able to start trading ahead of the IPO. When buying the shares (investing), you can profit if the share price goes up. Shares will only be available after they have officially listed.

What is a grey market?

A grey market enables you to trade before an IPO happens. If IG offers a grey market, we’ll base its price on our prediction of the company’s market capitalisation by the end of its first trading day. All you have to do is decide whether the market cap will go up or down and then ‘buy’ or ‘sell’ accordingly.

Register here if you want to receive updates on the Asda IPO

Who owns Asda?

Asda is owned by Walmart, which bought the company in 1999 for £6.7 billion. Asda has retained its own management team, giving it more autonomy than Walmart’s other subsidiaries. Before the acquisition, Asda was listed on the London Stock Exchange.

How can I stay up to date with the Asda IPO?

Sign up to this mailing list to stay up to date with the Asda IPO.

You might be interested in…

What you need to know about WeWork's initial public offering

Learn more about Peloton's highly anticipated IPO

Find out how you can trade Deliveroo's upcoming IPO

1Based on revenue excluding FX (published half-yearly financial statements, June 2019).

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.