8 London 2014 IPOs to remember

Poundland

Date: 17 March

Although the company was initially valued at £750m, with shares offered at 300p, shares immediately climbed in demand, reaching a shocking 358p within less than an hour of its first day as a public company.

Poundland restricted its float to big London Institutions and the demand from investors led JP Morgan and Credit Suisse, to cover the book by more than 15 times.

The IPO reduced the £200m stake owned by private equity firm Warburg Pincus, who reduced its stake to just over 30 per cent of the shares. The company also delivered 19 per cent premium to its investors in early trading.

CEO Jim McCarthy said: ‘We look forward to continuing to deliver, as a listed company, Poundland’s mission to provide our customers with amazing value every day.’

Pets At Home

Date: 17 March

Unfortunately, this has been dubbed as one of the worst performing IPOs in 2014. This could be because it floated on the same day as Poundland, which was an astonishing success.

Pets At Home was valued at £1.2m. It’s shares were initially listed at 245p, but fell by four per cent almost immediately, reaching 236p within an hour and ending at 225p by the end of first day.

Pets at Home, which raised £280m towards paying debt, claimed to have a 12 per cent share of its market and more stores than its five biggest rivals combined.

At the time, when shares in Pets At Home increased to 182p following the trading update, CEO Nick Wood commented: “I can’t control that. In the long-term the share price will reflect our strength of our proposition. This is all new to us. One of things I have learnt is that as a public company you have to be constantly telling the story.

“We believe in what we are doing. I think we have a growth a growth opportunity.”

Boohoo.com

Date: 14 March

In its first day of trading, Boohoo.com shares rose 70 per cent after stock price increased from its initial 50p to 85p, valuing the business at £870m. This was a substantial increase from its estimated £560m.

The company had already secured £300m from investors in a share placing secured ahead of its listing on the London stock market though.

Boohoo.com explained that while £240m would be placed aside to pay off loans, £50m will be used to finance its expansion plans.

Nick Cowles, FD at Zeus Capital, which advised Boohoo on its IPO, said: “This has been the second largest corporate IPO on the AIM market since its launch in 1995. The £300m placing will provide the business with the required resources for its international expansion plans and has enabled a partial exit for its founding shareholders.

“This shows that confidence has undoubtedly returned to the market with significant capital being deployed for opportunities with an interesting story, a strong management team and strategy for growth.”

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