DURBAN - STEINHOFF International said its subsidiary Pepco Group has set a price of e8.80 (R150.21) a share for its listing on the Warsaw Stock Exchange and values the company at €5 billion (R85.33bn).
Pepco Group, which owns brands such as Poundland, Pepco and Dealz, is a fast-growing pan-European discount variety retailer, serving more than 50 million customers in more than 3 200 stores in 16 countries.
The group expects to list and trade from May 26 on the Polish bourse.
Steinhoff has also decided to sell in connection with the initial public offering (IPO) of Pepco Group 102.27 million existing shares, excluding the over-allotment option.
Steinhoff said the number of shares that it was selling includes 23.11 million shares that have been sold by way of cornerstone investments to certain lenders under the debt facilities entered into by it.
“In addition, Steinhoff has granted the stabilisation manager, on behalf of the banks, an over-allotment option up to a maximum of 12.06 million existing shares,” Steinhoff said.
The IPO will reduce Steinhoff’s shareholding in Pepco Group to 78.9 percent, down from 98.8 percent, assuming a full exercise of an overallotment option is taken.
Pepco Group chief executive Andy Bond said they were proud to be joining the Warsaw Stock Exchange in what will be its biggest IPO to date this year and to become one of the largest listed companies in Warsaw.
“Our group operates in the attractive European discount retail sector, and with our three market-leading brands – Pepco, Dealz and Poundland – we are extremely well positioned to take advantage of the enormous growth opportunities in front of us,” Bond said.
The Pepco Group opted for the Warsaw listing, instead of listing in London, because of its exposure to the Polish market.
The offering was directed at retail and institutional investors in Poland and the offer shares will also be offered to selected foreign institutional investors, within or outside of the US.
The group said it was anticipated that retail investors would purchase 2.5 million sale shares, or 3.1 percent of the total number of sale shares
included in the IPO, while institutional investors will purchase 77.9 million of the sale shares included in the offering.
Bond said they were pleased to have received strong interest and support from a range of high-quality international and Polish investors, including substantial retail demand, who had recognised the quality of their financial track record, and the substantial long-term store growth opportunity that they could readily finance through their internally generated
cash-flow.
Pepco Group reported €3.5bn in revenue and earnings before interest, tax, depreciation and amortisation (Ebitda) of €229m, due to the impact of Covid-19 after some of its stores were closed to limit the spread of the pandemic in the year to September 2020. The group is aiming to grow its Ebitda to more than €1bn within five to seven years.
Steinhoff shares closed 4.64 percent higher on Friday at R2.03.
BUSINESS REPORT